Aid drops over Gaza due to food insecurity crisis, risks and rewards in investments, impact of rising cocoa prices on chocolate industry, extreme weather affecting cocoa production and chocolate prices.
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Quick takeaways
Increased aid drops by plane due to border crossing delays in Gaza to prevent famine
High volatility in stocks does not always result in higher returns, challenging modern portfolio theory
Deep dives
Food Insecurity in Gaza
30% of Gaza's population is experiencing catastrophic food insecurity, with the potential for a famine in May. Aid from countries like the United States and Jordan is being dropped from planes due to border crossing delays, but the volume remains insufficient.
Risk and Returns in Investing
Modern portfolio theory suggests that maximizing returns should align with an investor's risk appetite. While volatility is used to measure risk in investments, data shows that the highest volatility stocks do not necessarily yield higher returns.
Impact of Climate Events on Cocoa Prices
Cocoa prices have tripled due to extreme climate events affecting cocoa production in West Africa. Diseases like the Swollen Shoot Virus and Blackpod Disease have spread, compounded by government price regulations that discourage new plantations, leading to a supply crunch.
It is becoming harder to get supplies into the enclave, which is facing a growing risk of famine. As fewer trucks are making it in, more aid is being dropped by plane. Our producer takes us on a flight. Why high risk does not always lead to high reward (09:40). And the ripple effect of rising cocoa prices for chocoholics (14:43).