Chasing the Yield
Investing for income through dividends and distributions
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Crude oil prices hit it’s highest price in 2 1/2 years
The thinking I guess is that investors are pouring money into renewable energy generation and keeping oil production low. This would keep supply low during current and/or rising demand which will keep the price of oil elevated for the time being. I don’t think anyone can really tell what will happen over the next year…
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The Yield – Week ending June 11, 2021
Rebalancing portfolios, pie charts, inflation fears, oil prices, banks & cash, more inflation news, and much much more
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Inflation surges in May. Highest rate in 13 years
I still believe this is temporary. This inflation is largely caused by government shutdowns and changes in consumer behavior as we adjust to living post-COVID-19. While short term inflation is a pain it’s the long term effect of behavior and government policy that needs to be monitored. Strap in folks! The U.S. economy’s rebound from…
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U.S. Banks to business… stop depositing cash
Turns out banks can’t make money off hoards of cash if businesses aren’t borrowing that same cash. If I were currently running a business and I’m flush with cash there is virtually no risk to borrowing cash for operations. Interest rates are very low which would allow a business to invest its cash and still…
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Options traders betting on $100 per barrel oil
If oil does hit $100/barrel that will not be good for short-term inflationary pressures we’re already seeing. Owners of $100 options—now the most widely owned WTI call contracts on the New York Mercantile Exchange—are making a leveraged bet that oil prices will hurtle higher after already surging more than 40% this year. The roaring rally,…
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Surge in commodity prices bring inflation fears
More of the same inflation drum beat that we need to watch. I still think the current spike is temporary due to the novel shutdowns of the world’s economies due to the pandemic. Once things normalize (whatever that looks like) sometime in 2022 I expect inflation in the U.S. to return to pre-pandemic levels. Many…