RYE News and Press, Invesco S&P 500 Equal Weight Energy From 04/01/22

Western economies received a rude awakening to the risks of supply chain disruptions and component dependency/deficiency during the Covid pandemic. Sovereigns, businesses, and households today are all highly leveraged. Inflation is likely to be higher than the Fed’s target ...

A large difference between the pandemic and the war in Ukraine is that supply chains are no longer “only” disrupted but they could be destroyed for good. The European Commission has already announced plans to reduce its energy dependence on Russia. once the required ...

Even before the war began, supply chain frictions had only improved marginally from the Covid-19 pandemic. Now, expect even longer-lasting disruptions, a new round of delays, and protracted supply shortages. No economic sector can escape the surge in energy prices. For furth...

Follow the Money is a series of brief, information-rich posts that I will publish periodically but not on a fixed schedule. After rallying for 9 of the last 11 days, the S&P 500 went from down -13% to down just -3.4%. Growth has been hit hard by the slide in tech stocks this y...

The West is responding to Russia's invasion of Ukraine by weaning itself off Russian energy. Europe will have an acute need for more fossil fuels from outside Russia to meet its energy demands and achieve its ambitious plans to reduce its reliance on Russia. By spurring the transi...

The Western world stands aghast at the suffering of the Ukrainian people. The global economic consequences of the conflict could also be severe, because Russia and Ukraine are major exporters of vital commodities. The US and UK have announced oil embargos, with the US ban immediately ...

A confluence of negative factors set U.S. stocks up for a difficult start to 2022. However, we see both a short- and longer-term opportunity taking shape. Intraday market volatility has been dramatic and stock selling has become indiscriminate, as is often the case in big market swing...

Russia’s attack on Ukraine will have lasting and negative effects on the world economy. Within Russia, businesses selling to the domestic market will see foreign sources of products and services as unreliable, leading to local sourcing at higher costs and a lower variety of ava...

WTI crude closed last week at $114 a barrel, so the 2008 high is in play, contingent of course on how the Ukrainian crisis plays out. With sanctions on Russia, one of the largest commodity producers, about 25% of the global wheat supply is in danger, and given that the soybean harvest...

Oil prices have reached the highest levels since the all-time highs in 2008. The most obvious explanation for the sharp rally is the military conflict in Ukraine and the threat of a loss of Russian oil supplies. The extent to which a forward curve is in backwardation or contango is st...