by Michael Arbow MBA
Partner, RSD Solutions Inc.
If you love roller coasters, 2011 is certainly setting itself up for a wild ride stemming from commodity price volatility. Events in the Middle East, the US Federal Reserve's quantitative easing and globally low interest rates are providing an unstable combination of market volatility triggers. Of note recently is the upward march of oil with Brent now trading above $105 USD. Predictions from the markets of a 10% price increase in gasoline for the summer are given a 1:3 and prices of $4.00 at 1:10 (in California it may be occurring as this blog appears). For those folks that drive to work and for those firms that have energy as one of their main cost drivers how do you plan cope – what is your risk management strategy to retain as much of your income as possible and thus keep cost down? One analyst has noted that between $3.00 and $4.00/gallon "real pain" hits the US consumer. What is your company's tolerance?
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