At the start of 2010, investors in energy stocks had plenty of reasons for optimism. Global economic growth appeared reliable enough to sustain a modicum of stability in oil commodity pricing. Analysts anticipated that natural gas prices would climb off 2009 lows, aiding the integrated oil and gas majors. What’s more, these giant integrated oil and gas corporations sported [...] [...more]
At its low moment for 2010, the S&P 500 had forfeited 17% of its bull mareenket gains. The heralded U.S. gauge has since rallied back to a more tolerable 10% correction level. What are the reasons for a renewed interest in risk assets? Credit the appearance of less uncertainty, from BP’s capping of the oil gusher [...] [...more]
As I look at the price of crude oil at $80+ per barrel, I admit to being impressed. After all, the U.S. dollar had gained about 10% in 4 months time, and this commodity that is priced in dollars managed to hang tough. Yet ever since Thursday’s late announcement regarding an EU-IMF solution for Greece, the U.S. dollar has [...] [...more]
It’s closing in on 3 months since the U.S. dollar hit a multi-year bottom. At that time, the media’s focus on gold’s success (and the dollar’s demise) bordered on incessant; the coverage even contributed to a bit of panic buying of the yellow metal and panic selling of the “world’s currency.” Then came sovereign debt concerns in the [...] [...more]
There are plenty of reasons to remain bullish on stocks. The Index of Leading Economic Indicators is at the highest level in 1 year. More than 4 out of 5 corporations are beating earnings expectations. Inflation, while beginning to rise, is tame around the world. And global monetary/fiscal policy is mostly stimulative. That last one, though, doesn’t exactly include China. The [...] [...more]
The closest thing that this market has seen to a correction was the 7% pullback in July, prior to Q2 earnings results. Similarly, the closest thing we’ve seen since July is the 5% pullback from an intra-day S&P high of 1080 on 9/23/09 to 1020 on 10/2/09; once again, trepidation has occurred before earnings reports. Of course, the better-than-anticipated July [...] [...more]
