It is not surprising that the weather is good for the economy, but it is a bit of a shock to realize how reach the point and usually beneficial from a milder winter effects can be everywhere. The mild weather this winter has been a boon to national, boost sales to renovation superstores Home Depot and Lowes and help local governments save money on cleaning costs of snow. Short consumers money can breathe easier, too, since the average winter heating bill this year fell nearly $ 0 compared to the last two snowy, cold years.
Yet most of us do not plan on ice and snow to keep our businesses afloat and fewer winter storms are not good news for everyone. Some New Hampshire businesses that rely on winter sports and tourism show a slow 2012, and visits to the ski resort area fell. There is snow in the mountains, though: stations across New England have been able to use snowmaking equipment wisely. Despite the fact that this winter has touted third less snow in the 46 years that NOAA was keeping, ski resorts are open.
Now, in the insurance industry, we are used to help companies and families to ensure against the perils weather - too good weather is generally not something people insure against. But where there is a dollar to be made, the market will find. In the article How Wall Street Profits Weather Bizarre form, the author talks about how supposedly derived weather, saying
"contracts, many of which trade like stocks, are generally indexed on things as rainfall and temperatures. But in recent years, specifically related to snowfall contracts began to take off in popularity. the contacts essentially act like insurance, allowing, for example, retailers or the ski mountain to ensure against too much snow or too little. Wall Street sells contracts, matching buyers and sellers and pocket a small commission. generally, it is a good deal, but this year, it could be a real moneymaker. "
More about weather derivatives.
There is a group that can always be relied upon to hold the snow and winter storms: children. This year they have been cheated and unfortunately has not reaped the same record number of snow days as they got used to. But even this will work well. In at least one Massachusetts town, they will get spring break a week instead
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