Oil

  • 07 Oct
    Oil & Gold Are Speculation Plays At The Moment, Are You Up For It?

    Oil & Gold Are Speculation Plays At The Moment, Are You Up For It?

    • The long term trend for oil is clear, but short term moves make it a great trading asset.
    • Gold is in a decline as the global economy looks stable and yields are slowly increasing.
    • A quality miner with dollar cost averaging might be the best gold diversification option.

    Introduction

    Two indicators that can give us insight into how the global economy is doing are gold and oil.

    Estimations from various analysts are all over the place for both commodities, some say gold will be at $1,900 in a year or two and oil at $100 while some see oil below $30 or even worthless and gold at $800. What will happen is anyone’s guess as the factors that will influence the outcomes are as yet unknown. As an example, nobody knows if Russia or Iran are going to increase oil output or if additional supply from U.S. shale will be enough to push prices down again. Nevertheless, a look at price movements from the two commodities can give us some interesting insights into the short term expectations and aid  us in the assessment of risk. More →

  • 28 Sep
    Earnings Season Is Approaching. Are You Ready?

    Earnings Season Is Approaching. Are You Ready?

    • Earnings will decline for the sixth consecutive quarter.
    • We question the 2017 forecasted earnings growth based purely on higher oil prices.
    • We’ll take a look at what can be done to limit your risks and increase returns.

    Introduction

    What we know is that for the last 5 quarters, the S&P 500 has had declining earnings. The situation doesn’t seem to change course for the next quarter, but most analysts expect earnings growth to come in 2017 as a result of a rebound in energy prices.

    As our readers know, this rebound should have already happened six months ago according to the same analysts’ expectations. In this article we’ll tell their story, but we’ll also analyze what else is out there that can influence future earnings. More →

  • 26 Sep
    An EV Future: Investing Dos & Don’ts – Specific Investment Opportunity Disclosed

    An EV Future: Investing Dos & Don’ts – Specific Investment Opportunity Disclosed

    • We won’t mention Tesla (except for right here).
    • Margins are essential for profitable long term investments.
    • Alternative related investments seem like the best option for low risk, high reward pre-hype investing opportunities in the electric market, the opposite is true for oil.

    Introduction

    The rumor is that Apple Inc. (NASDAQ: AAPL) is searching for a partner to develop a car that many believe will be all-electric. This would be only one additional player in the long line of automotive manufacturers that have embraced the electric trend.

    In this article, we will look at how big the electric trend really is and what the investing opportunities and risks related to the new trend are. More →

  • 18 Aug
    Commodities: Stick To The Fundamentals, Beware Of Speculation

    Commodities: Stick To The Fundamentals, Beware Of Speculation

    • Oil prices are increasing the number of rigs, putting pressure on prices.
    • Soros sold his gold, should you?
    • Iron ore is hot, but waiting until winter might provide better purchasing opportunities.

    Introduction

    Yesterday we discussed how Treasury Inflation-Protection Securities (or TIPS) are a great protection during times of inflation. Today we are going to take a deeper look into another great inflationary protection, commodities.

    The general feeling is that commodities have surged since January, but there is a high level of divergence. This divergence in commodity price movements is due to speculation in some commodities and fundamental reasons in others. More →

  • 12 May
    Is There Equilibrium in Oil?

    Is There Equilibrium in Oil?

    • Production costs are below current prices and reserves are constantly growing.
    • OPEC’s rosy forecast of $70 a barrel in 2020 is based on a model excluding any disruptions from electric engines or renewable technology developments.
    • Demand in developed countries is declining and the trend might spill over to developing countries.

    Introduction

    Oil prices above $100 a barrel seem impossible but they were a common thing just two years ago. 2014 was the worst year for oil as it tumbled more than 50% from above $100 to below $50 a barrel. In January 2016, oil reached lows not seen since 2001 and 9/11 with prices below $30. The current price of oil quickly rebounded from those lows and is currently around $45 a barrel. More →

    By Sven Carlin Commodities Investiv Daily Oil
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