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Summary Taken by themselves, yesterday’s moves in all three asset classes were large but hardly out of the norm. What was unique about yesterday, or at least used to be considered unique, was the fact that all three asset classes rallied 1.5%+ on the same day. It’...
Summary We expect macro headwinds will continue to pressure U.S. corporate earnings in the coming months. We expect earnings expectations to decline as multinational firms realize foreign exchange headwinds that accelerated over the past year. Investors can avoid undue interna...
Summary Last week, the 2-year Treasury rate rose above 4.3%, the 10-year Treasury rose above 3.9%, and mortgage rates topped 7%, their highest level in 20 years. By reducing its balance sheet by $95 billion per month, the Fed has sent the 10-year rate substantially higher. The...
Summary U.S. July production increased by a minimal 12 kb/d to 11,800 kb/d. ConocoPhilips continues to pursue the Willow oil project in Alaska while NGOs oppose it. In August, a new oil field was discovered - a geological company confirmed the Wyoming deep discovery. The n...
Summary YTD, the S&P 500 is now down 24% while bonds have their own double-digit losses. Like stock valuations, currency valuations aren’t great timing tools but over a 3-year period after becoming undervalued, the outperformance is strong. Consumer defensive stocks...
Summary I am reducing my West Texas Intermediate oil price range by $10 to range between $80 to $100 per barrel for October. As I write, the VIX is nearly 32, an unusually high value. The VIX is often referred to as a fear gauge because the higher it is, the more volatile markets ...
Summary Inflation as measured by government indices (e.g., CPI, PCE Deflator) is a lagging indicator of true inflation. True inflation is defined as the loss of purchasing power of a currency. Right now that is just not the case: the dollar is soaring against nearly every currency...
Summary The energy markets have been volatile for most of 2022, continuing a two-year trend that dates to the early days of the coronavirus pandemic. The rising rig count and share buyback and M&A activity in midstream, especially in the Permian Basin, indicate strength in the...
Summary We believe it is unlikely that Fed Chair Jerome Powell will navigate a pivot to a less-hawkish stance before early in 2023. We expect China to grow at a meager 2%-3% pace in 2022, with the potential for these risks to bleed into 2023, as a slowing developed-market consumer...
Summary In August 2022, Santos took Final Investment Decision for the DPD project which will now see future Barossa gas being sent straight to the onshore Darwin LNG plant. Prior to the DPD plans, the planned Barossa gas export pipeline was to tie into the existing Bayu-Undan GEP ...