Crude Oil’s about face and the possibility of the bond market popping
With Chris Temple today Cory starts off by addressing the reversal we saw in crude oil. Again on the heals of comments made by Iran regarding its production we saw oil swing by over $1. We address the fact that demand is still not there global and expecting peak oil to return in the short term is foolish.
We then move onto the bond market, more specifically the US treasury bond market. With yields remaining low but still higher than many countries around the world the play is one of capital gains for the investor. This is all happening with fear no where near an extreme level.
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We’re not running out of oil anytime soon, only cheaply acquired oil. The dilemma as I understand it is that the American industrial sector can’t make it on $100 oil and the oil industry can’t make it on $50 oil. Somebody has to go broke.
On buying USbonds/notes, unless one already has a few million, investing in the hopes provided by the 33 year trend of falling rates is about as exciting as watching paint dry. I don’t think I’ve got 25-30 years left to test that idea. JMO
Chris, are you bearish on US treasuries in the long-term?
Depends on what you mean by the longer term…certainly not in the foreseeable future.
Here’s a good read if you are in the conventional markets: http://wolfstreet.com/2016/08/19/biggest-u-s-mass-layoff-announcements-2016/
IMO…A worthwhile read……..China & Gold.
http://news.goldseek.com/GoldSeek/1471957528.php
Good show guys