The US now accounts for the most oil production in the world. Importantly, as we share in the graph below courtesy of Axios, the ramp-up of US oil production since 2020 has helped offset recent supply reductions by Russia and Saudi Arabia. Oil production troughed in 2020 as the pandemic crushed demand and limited production. […]
The Fed offers banks and money market funds reverse repurchase agreements (RRP) to drain excess liquidity in the money markets, allowing them to manage the Fed Funds rate. RRP are collateralized overnight loans made by banks and money market funds to the Fed. In March 2021, RRP balances surged due to the excessive liquidity caused […]
JP Morgan CEO Jamie Dimon testified to Congress on Wednesday in a routine meeting about the banking industry. In the process, the topic of Bitcoin and other cryptocurrencies came up. Despite having significant investments in blockchain, Dimon had some choice words for Bitcoin and other cryptocurrencies. In particular, the following quote is making headlines: “If […]
The ADP jobs report came in at 103k versus the expected 130k. The ADP also revised the jobs count from October to 106k from 113k. Over the last three months, the average gain has been just under 100k. Unlike the BLS, which surveys companies about their employment activity, ADP uses actual payroll data, including more […]
The Economist published an article entitled Is It Cheaper To Rent Or Buy Property? It shows how the financial decision of buying versus renting has drastically changed due to the fiscal and monetary response to the pandemic. With massive stimulus came inflation and higher mortgage rates. Typically, higher mortgage rates result in lower home prices. […]
Per the Tweet of the Day, our SimpleVisor relative analysis tool suddenly shows the real estate sector is the most overbought sector. For the better part of the year, real estate and many other sectors grossly lagged behind the technology and communications sectors. As we approach year end, the tide is turning. The graph below […]
10-year U.S. Treasury note yields have fallen by nearly 0.75% since late October. Fundamentally supporting the steep decline in yields is weaker than expected CPI and PCE inflation data. Further, the last BLS employment report shows a slowing of job growth. Additionally, and maybe most importantly, the Fed seems content that the recent tightening of […]
When President Biden took office, investors assumed clean energy would be a top priority. Therefore, clean energy stocks should do very well. The narrative made sense. As shown below, clean energy stocks were up over 20% in the first few months of Biden’s term. Those gains, however, didn’t last. Since then, clean energy stocks are […]
Warren Buffett’s partner, Charlie Munger, passed away on Tuesday at the ripe age of 99. Charlie Munger and Warren Buffett founded Berkshire Hathaway in 1975. In the nearly fifty years of value investing, the simple genius of both founders has made them billionaires and many Berkshire investors millionaires. Berkshire Hathaway has a market cap of […]