For the past several years, we’ve filled these pages with commentary on how “real stuff” like oil, grain, and gold are in an era of outperformance vs. conventional stocks… especially stocks in the landfill stuffing business.
Anyone reading the financial press must feel like they’re trapped in a particularly grueling version of Groundhog Day. Crude oil prices just keep on rising.
Today, the black goo hit $146 a barrel. Traders took fright, it seems, at a drop in US stockpile. Crude oil prices are now up a whopping 55 percent since the beginning of the year.
But is supply and demand really the culprit? Hank Paulson thinks so. He says supply and demand is the “predominant factor.”
We are sounding a “trading alert” in today’s column. The alert is cheap gold… dirt-cheap gold.
Oil is skyrocketing… and Chevron (NYSE: CVX) and Exxon (NYSE: XOM) should be making outrageous profit margins. So let’s tax those “windfall” profits! But… hold on a minute…
Brian Hunt brings you the New Highs and Lows of note last week.
Saudi Arabia may boost its oil production, says Bloomberg, “beyond a planned 200,000 barrel-a-day increase in July if the oil market requires extra supply.”
The report follows a comment by Saudi oil minister Ali al-Naimi at a summit in Jeddah.
The oil market due a correction, says Brian Hunt in DailyWealth… Is a drop of $40 on the prices of a barrel of crude coming soon
It’s hard to believe now, but crude oil was under $20 a barrel back in 2002. The U.S. economy was weak, and Chinese demand hadn’t entered overdrive yet.
Corn prices surged to a record high today following flooding the Midwest.
Reuters reports that “front month July corn on the Chicago Board of Trade rose to a contract high of $7.57-3/4 a bushel, up more than 3.5 percent from Friday’s close, while July 2009 soared to an all-time peak of $8.07.”
Get ready to pay through the nose for food, says Brian Hunt in DailyWealth:
The states of Iowa and Illinois are the world capitals of corn production. Over 27 million acres there are devoted to growing corn.
Recent Brazilian oil discoveries have lead Brazil’s richest man, Eike Batista, to take his company OGX Petroleo e Gas Participacoes SA public in a $3.37bn share offering. This from Bloomberg:
Brazilian billionaire Eike Batista is planning a 5.59 billion real ($3.37 billion) initial public offering of OGX Petroleo e Gas Participacoes SA, betting the country’s recent oil finds will lure investors who snubbed 20 IPOs this year.
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