There’s No Telling How Much This New Bond Market Cycle Will Hand Us (But It’s a Lot)

by | published February 21st, 2018

The bond market is about to enter a phase we haven’t seen in over 70 years…

A rising interest rate cycle.

A trend that has only been accentuated by the Federal Reserve’s aggressive plans to accelerate interest rate hikes and ongoing concerns over an impending major stock market correction.

And while it is too early to jump on the “Death of the Bond Bull Market” sentiment swirling around Wall Street, the current direction of interest rates could be worrisome for U.S. oil producers.

You see, any way you look at it, a wide swath of U.S. oil and natural gas producers are going to take rising rates on the chin. Bankruptcies, mergers and acquisitions, and asset sales one step ahead of the sheriff will be increasing.

That doesn’t mean there’s no profit to be made here… On the contrary, in fact.

Those are all opportunities.

But it does mean we may have to tread carefully

Unlike Wall Street, We’re Not Running Scared From Oil’s Recent Volatility

by | published February 15th, 2018

When oil trading ended at 2:30 PM Eastern yesterday, the West Texas Intermediate (WTI) had moved up 2.4%.

Brent, the other and more globally used benchmark, had risen 2.7%.

Both reversed a downturn that has enveloped the oil trade since the end of last month.

You see, after reaching multi-year highs on January 26, WTI had declined 10.5% through February 13 while Brent slid 11.3%. 

Moreover, as the markets begin to show signs of finding a bottom – with four consecutive positive sessions through yesterday’s close – the energy sector has continued to perform weaker than most of the other S&P 500 sectors.

Because of that, analysts have started grasping at straws.

Some are predicting a gradual lowering of prices from current levels…