With unprecedented volatility in the financial markets that’s been brought on by the international spread of coronavirus, and the economic backlash associated with it, is potential systemic risk to the global financial system lurking ‘out there’ in an obscure and often little understood investing vehicle (even for its buyers)… DERIVATIVES! Back in 2015, then reposted […]
Summary: The Baltic Dry Index plunges below 400 for the first time ever! You’re probably asking yourself about now why would anyone care about the Baltic Dry Index? The reason? Anyone who formulates a strategic plan for their business needs to consider the anecdotal evidence concerning the current strength and potential future direction of the […]
This morning Brent crude hit its lowest level since 2004 while West Texas Intermediate hasn’t had spot prices this cheap since about 2003 (see chart above)! Market experts are in general citing surging levels of crude supply with no appreciable decline in that supply anywhere on the horizon as the major reason for the price drop. A popular […]
The pundits on TV have all glommed onto the common argument that declining crude oil prices are responsible for declining stock prices! I, however, am of the opinion that declining crude coupled with the overall decline in the CRB, are merely symptomatic of a greater potential problem. That is the real possibility for the US economy […]
Using a term that older readers will remember, ‘Black Monday’, these articles from around the world will bring you up to speed concerning today’s global financial angst! As Dow futures fall 600+ points, this article provides a collection of links from respected financial sources (plus one written by me) containing information you should be aware of regardless of […]
(Note: This article also appears at Global Economic Intersection here) Article Summary… For the consumer who is now paying a fraction of last years prices at the pump, we know that the reduced cost in oil has been a financial boost to our wallets! But, in the overall scheme of the US economy, do the […]
In an article this morning, ‘Is there a downside to plunging oil prices?‘, we looked at the potential impact the price drop could have on derivatives, high yield debt and geopolitics! I have since read an article that expands my list of three issues to a discussion of ten areas of the economy that have […]
If you’ve been listening to the reporting of financial or political pundits, falling oil prices have typically been touted as a ‘major tax cut’ for consumers! They speak of the fact that the drop in the price of a barrel of oil (WTI currently in the low $60/barrel range) puts money into the consumers pocket […]
