Even with the decline in crude oil prices from recent highs we remain bullish on the energy sector. We think investors are grossly underestimating the impact the shut-in Libyan sweet crude oil production will have on energy markets this summer and fall.
My all-time favorite movie by far has to be Braveheart released in 1995. My Father and I both saw it several times in the movie theaters and the film went on to win the Academy Award for Best Picture and Best Director. The movie was filmed with many vivid scenes and the one that comes to mind is when the English cavalry were bearing down on William Wallace (Mel Gibson) and his fellow Scots.
I've plotted the S&P regression data as an area chart type rather than a line to make the comparisons a bit easier to read. It also reinforces the difference between the line charts — which are simple ratios — and the regression series, which measures the distance from an exponential regression on a log chart.
The S&P 500’s short-term declining trend has stalled this week. Indicators are oversold and the market is ripe for a rally. So far, the S&P 500 rallied 9 points off of the lows to break 6 consecutive days of declines in equities, but it has failed to breach above 1296. 1296 use to be a demand zone, but now serves to supply shares.
Last month German politicians in a stunning policy reversal revealed that they will shut down all 17 of their nuclear reactors over the next decade. Germany is the largest national economy in Europe and the fourth-largest in the world. Nuclear power accounts for a staggering 23% of the power used in the country – a larger percentage than is used in the U.S. and U.K. (see charts courtesy Financial Times and The Economist).
Yesterday I featured a commentary on NYSE Margin Debt and the S&P 500 that illustrated the growth of margin debt since 1995 and the correlation with market peaks. After it appeared, Lance Roberts, General Partner & CEO of Streettalk Advisors, sent me his analysis of the situation based on the larger context of the NYSE data that includes free cash accounts and credit balances in margin accounts.
Get ready for more money to be printed – this time not to subsidize an overly indebted American consumer, but to stem against the credit destruction caused by the Federal Reserve (Fed) itself.
However the cold war being fought between Saudi Arabia and Iran plays out at this week’s OPEC meetings, oil consumers shouldn’t take any subsequent pledges of increased cartel production too seriously.
The financialization of education, the coming implosion of State revenues, the indentured serfdom of "student loans" and the "end of work" era will enable a revolution within higher education.
There are no historical examples of any country ever digging itself out from so deep a hole, and yet we find that the entire developed world has bravely pushed itself deep into unknown territory