Oil & Energy Investor by Dr. Kent Moors

Oil Developments and the Way to Invest in an Age of COVID-19

by | published March 27th, 2020

In the last Oil and Energy Investor I laid out what is coming for the U.S. economy and asset the stage for today’s outlining of an investment posture during the pandemic. COVID-19 (coronavirus) is likely to become a recurring cyclical problem, ebbing during certain times of the year and then coming back in others. As a result, we need to realize that, until a vaccine emerges, this is going to be a different investment environment.

But before we get to that, I’ve got some news on breaking developments in the oil sector…

What Investors Should Do as “Something Wicked This Way Comes”

by | published March 25th, 2020

Apologies to Ray Bradbury, but the title of his 1962 novel seems quite apt these days.

Yesterday, markets posted the largest single rise since 1933 on the expectation of a massive Federal package of financial assistance. Of course, you’ve got to remember what was happening before and after 1933 in the United States.

Putting yesterday in perspective, after the huge 9.4% single day rally – albeit from a lower base figure, the S&P remains down 21.8% for the “rolling month,” adding the latest daily close, subtracting the earliest.

The rally took place as beleaguered investors eyed some $2 trillion in government largesse coming in a hodgepodge of payouts designed to have something for just about everybody.

Yet despite what some commentators have labeled it, one thing this package is not is stimulus.

A stimulus provides a kick-start, a primer for the pump, with the system than taking over. There is no prospect that the economy will be moving forward after this aid. Rather, what the payments will do is provide necessary lifelines to elements throughout the economy, avoiding further collapse.

As a government responsibility, it is an appropriate response.

But let’s not fool ourselves into thinking it is something it isn’t.