California Water Update
California’s drought conditions continue to reflect the effectiveness of conservation measures and increased precipitation. The state’s second snow survey indicated that the snow pack was at 130% of average at the measurement point in the Sierra Nevada. Reservoir levels are up, but still well below desired levels. El Niño-fueled storms have delivered January rainfall at 150% of normal in San Francisco, 200% of normal in Fresno and more than 100% of normal in Los Angeles.
Despite progress, California is not out of the woods yet, and the State Water Resources Control Board has approved an eight-month extension of existing drought-related emergency regulations.
For investors, the message is, things change. Consequently it is important to continue to update assumptions and make appropriate adjustments to portfolio strategy.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®