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Current Markets Energy Markets

Gas Prices Jump More than Expected

Andy WaldockComment on Gas Prices Jump More than Expected

The recent jump in gas prices were expected to be much more gradual. We saw commercial traders as strong buyers of crude oil below $80 as June came to a close. We firmly believed that this would be the bottom of the cycle as the national average fell to $3.30 per gallon. What no one expected were the simultaneous mechanical failures of some of the main pipelines and refineries. This has caused the price of petroleum products like heating oil, gasoline and diesel fuel to skyrocket by 25% in little more than one month.

Macro Viewpoints

The Land of Personal Accountability & Ultimate Opportunity

Andy WaldockComment on The Land of Personal Accountability & Ultimate Opportunity

The United States has always sought to balance the opportunity of the individual to achieve unbelievable success while promising a minimum safety net for us all. This leads to a society with billionaire twenty-somethings and millions scrambling to get by. I am not a politician but, if I were, I’d do everything I could to capture the vote of the millions scrambling to get by rather than the few who have risen to the top. After all, time and votes are the only things we all share equally.

Current Markets

Cheap Beef Isn’t Always a Positive

Andy WaldockComment on Cheap Beef Isn’t Always a Positive

The drought of 2012 now covers more than half of the continental United States. Temperatures have set records throughout 2012 leading to the warmest 12-month period since the National Oceanic and Atmospheric Administration (NOAA) began keeping records in 1895. Grain farmers are at least partially compensated for their lower output by higher prices on delivery as well as various insurance programs that kick in when output falls to pre-determined levels. The cattle industry faces an entirely different dilemma.

Current Markets Macro Economics Trading Strategies

Protect Yourself from Coming Equity Declines

Andy WaldockComment on Protect Yourself from Coming Equity Declines

The stock market has been exceptionally volatile lately. The S&P 500 fell by 10.5% in the month of May only to rebound by 9% through Independence Day. The choppy market action is indicative of the bear market we are in. We have suggested that the developing economies of Brazil, Russia, India and China (BRIC’s) would help pull us through as they develop their own middle class consumers. Unfortunately, it appears that the BRIC’s won’t be able to rescue us from a projected fourth quarter recession, which makes June’s stock market rally a great opportunity to hedge part of an equity portfolio and provide some protection ahead of a global economic downturn.