The Era of Weather Volatility Will Continue to Escalate Peaking in the mid 2030's

Weather - shutterstock_1564449829

Earth's climate is driven by the forces of outer space. All the planets of our solar system are in constant motion both rotationally around the sun and their own axes. Every planet has a different torsional velocity force, different mass, different gravimetric force and different magnetic force that is energized by the sun. All these forces are constantly interacting with both the earth, sun and moon to alter the sun's overall activity, the upper airflow patterns of earth's atmosphere and the tidal forces acting on our oceans. The sea surface temperatures of our oceans are driven by whether these planetary forces are creating up-welling which cools our oceans, downwelling which warms our oceans, and the overall velocity of the earth’s river flow called the Thermohaline current.

Sea surface temperatures determine the trends in earth's ambient air temperatures and determine the nature of High pressure and low-pressure systems and how that equilibrates with the Jet Stream upper airflow pattern. The 89-Year Solar Gleissberg cycle is the completion of eight 11-year solar cycles that completes a full solar cycle. The 5-years leading into and out of this Gleissberg cycle creates wild weather volatility throughout history. The dust bowl period of the 1930's for the US was the peak in global weather volatility the last Time the Gleissberg Cycle was in place until now.

The difference between now and then is that back then we were not in a Grande Solar Cycle Minimum or a 30-50 period for lower solar output. This time we are and adds an additional accelerant to an even more aberrant period of weather volatility ahead than that which was seen in the decade of the 1930's. The lower solar output of the sun leads to a cooling of the outer stratosphere that then shrinks earth’s atmosphere thereby crimping both the Northern and Southern Hemisphere Jet Streams from a zonal flow to a more amplified meridional flow. That clashes hot air against cold air causing wild storm activity and also causes stagnant weather patterns that can cause record floods and record droughts in adjacent regions simultaneously. In addition, we can see record heat followed by record cold within 36 hours which we have already seen in Russia and also in Chile/Argentina this past month and in the US in January 2024.

Earth's atmosphere has shrunk 4500 feet over the last 15 years from the lower solar output of the sun and this amplified upper airflow pattern will not change until the sun begins to become active again which won't happen until the 2050's but the peak trough in lower solar activity will occur in the mid 2030's. We believe that Solar Cycle #26, the one after the current 11-Year Solar cycle #25 which is peaking now, will see virtually zero sunspots. This has to do with what is called the solar dynamo of the sun in which the 4 magnetic fields that rotate around the sun which normally find themselves on one side of the sun or the other, called constructive force formation, allows for a strong magnetic field strength to allow sunspots to fire off actively. However, these magnetic fields are spinning at different rates hence at some point you find them on the opposite sides of the sun in which we get a destructive force formation where the magnetic fields cancel each other out causing a very low overall magnetic field strength for the sun. When this happens sunspots rarely form and physicists who study the solar dynamo are clearly showing that Solar Cycle #26 will see an almost complete magnetic field cancellation hence the forecast by us that very few if any sunspot will form.

The last time this happened was during the 1600's during the most extreme Grande Solar Minimum of all time called the Maunder Minimum that saw some of the most extreme weather volatility over the last 1000 years leading into the peak Ice Age period. While this period will be much shorter than the Maunder Minimum the decade of the 2030's will be equally disruptive from a weather volatility perspective.

We believe that one of the best trades for the next decade is to be long weather volatility. One way to do that is to have exposure to agricultural commodities that are in essence weather derivatives given that prices are largely driven by changes in weather volatility. The implications in the historic era of weather ahead for industries like agriculture and the insurance industry etc. are going to be life changing and generational in nature. This is but a snippet of the various variables like increased volcanic activity and the 18.6 year earth-sun-moon nutation cycle and many others that are also at work that we can not discuss for the purposes of this article at this time.

If you would like to be sent out our next podcast on global weather patterns ahead for the upcoming growing season heading into year-end including natural gas please use the link below to our website and sign up and we will be sure to get that to you when it is released at the end of May.

Use this link to our website to receive our latest climate cycle podcast:

https://www.hackettadvisors.com/Register_SampleReport.asp

As always God bless all of you in Agriculture with happiness, health, safety and great business success.

Cheers

Shawn Hackett

This material has been prepared by a sales or trading employee or agent of Hackett Financial Advisors Inc. and is, or is, a solicitation. This material is not a research report prepared by R.J. O’Brien’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.

The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Hackett Financial Advisors Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.


On the date of publication, Shawn Hackett did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.