A global weather prediction firm based in Bethlehem is expanding its offerings to clients with a new equity report, which tracks how weather specifically influences 63 equities.
The reports look at the last quarter, month-to-date and nine months ahead.
Bill Kirk, CEO of Weather Trends International, said the reports can be used by large firms in the financial services field, such as J.P. Morgan, or even small, local banks to view how weather may affect a wide variety of industries they may be investing in, such as home centers, the auto industry and e-commerce.
Weather Trends takes the weather predicting data it has been providing for 15 years and uses it to determine consumer trends, such as why people are or aren’t shopping at home centers during a particular season.
For example, Kirk said, retail stocks were beaten down harshly in the first quarter of the year because of unseasonable weather.
“But looking ahead, you can see more normalized seasonal weather, and knowing that, you’re less inclined to panic and sell,” Kirk said.
The report also can be used to spot recessionary trends before they happen. He again gave retail as an example.
“If you didn’t buy spring apparel, stores need to discount that to bring summer gear in. If every month keeps having the wrong weather, you can start to see a problem,” he said. “It’s crippling if it’s month after month.”