Commodities

Stocks Are Still Not Cheap

By |2020-03-31T13:08:04-04:00March 31st, 2020|Bonds, Commodities, Currencies, Financial Planning, Markets, Real Estate, Stocks|

A Prognosis for U.S. Stocks The future for U.S. stocks over the next decade appears ominous, regardless of the impact of the Coronavirus. Why? Because valuations matter. And stocks at the end of February were priced for perfection. Any significant negative development was poised to drive them lower. The COVID-19 Virus that shut down the U.S. economy has certainly qualified. [...]

A Marathon, Not A Sprint

By |2020-03-30T09:20:12-04:00March 30th, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Financial Planning, Markets, Real Estate, Stocks, Taxes/Fiscal Policy|

Stocks rose last week, a breathtaking, nearly 20% run off the recent lows before a pullback Friday trimmed the gain for the week to about 11%. That was certainly helpful but investors would be well-advised not to get too excited. This is what bear market rallies look like. They come out of nowhere, they run much further than anyone thinks [...]

Regime Change

By |2020-03-23T08:06:50-04:00March 23rd, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Real Estate, Special Reports, Stocks, Taxes/Fiscal Policy|

Stocks took another beating last week as the scope of the coronavirus shutdown started to sink in. The S&P 500 was down 15% last week with most of that coming on Monday after the Fed’s emergency rate cuts. Our accounts performed much better than that, but were still down on the week as corporate and municipal bonds continued to get [...]

Is GFC2 Over?

By |2020-03-17T19:47:28-04:00March 17th, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Is it over? That’s the question everyone is asking about both major crises, the answer is more obvious for only the one. As it pertains to the pandemic, no, it is not. Still the early stages. The other crisis, the global dollar run? Not looking like it, either. Stocks rebounded because of “major helicopter stimulus” or because that’s just what [...]

A Week We’ll Never Forget

By |2020-03-16T07:02:39-04:00March 16th, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Financial Planning, Markets, Real Estate, Stocks, Taxes/Fiscal Policy|

Last week was one of the worst weeks in the history of the US stock market. Thursday’s plunge was the worst one-day loss other than the crash of 1987. Friday’s recovery was stunning as well but big rallies are typical of bear markets and that is, unfortunately, where we now find ourselves. Obviously, the selling was about the coronavirus and [...]

Is this the Beginning of a Recession?

By |2020-03-10T10:40:57-04:00March 10th, 2020|Bonds, Commodities, Currencies, Economy, Financial Planning, Markets, Real Estate, Stocks|

As I sit here Monday evening with the Dow having closed down 2000 points and the 10-year Treasury yield around 0.5%, the title of this update seems utterly ridiculous. With the new coronavirus still spreading and a collapse in oil prices threatening the entire shale oil industry, recession is now the expected outcome. Most observers seem to question only the [...]

The Black (Eye) Curve

By |2020-03-09T12:04:02-04:00March 9th, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

An honest-to-goodness oil crash. For a time this morning, the front month WTI futures contract had fallen into the $20s for the first time since Euro$ #3. Up to now, that prior outbreak had been the more (in)famous as far as crude prices have been concerned. Over the intervening years, it was thought that supply and demand had been made [...]

The COLLATERAL-17 Virus?

By |2020-02-28T19:49:11-05:00February 28th, 2020|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With interest rates tumbling all over the world, gold should be killing it. Instead, gold is getting killed. The major correlation for this precious metal has been the bond market, falling yields. And that makes intuitive sense; gold as a hedge pays no interest, but if competing safety instruments like UST’s end up paying up a lot less then gold [...]

The Black Curve

By |2020-02-27T19:19:25-05:00February 27th, 2020|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The WTI futures curve is supposed to be in backwardation, though the word “supposed” is a loaded term. Backwardation is more of an ideal condition than one you might find most often in practice. There’s almost as much contango as backwardation in the futures market’s history. It’s not so easy to balance all the complexities that are spun through oil [...]

COT Black: German Factories, Oklahoma Tank Farms, And FRBNY

By |2020-02-06T19:11:14-05:00February 6th, 2020|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I wrote a few months ago that Germany’s factories have been the perfect example of the eurodollar squeeze. The disinflationary tendency that even central bankers can’t ignore once it shows up in the global economy as obvious headwinds. What made and still makes German industry noteworthy is the way it has unfolded and continues to unfold. The downtrend just won’t [...]