In lieu of the regular weekly update, we provide a preview of the upcoming May issue of Leeb's Real World Investing, to publish early next week.
In the issue, we review several key natural resources themes, as we explain how the long-term trend in commodities remains intact. We will also review the inflation outlook for the rest of 2016, and explain how the current inflation levels appear set to rise. We will profile several ways to remain profitable to weather these stormy waters.
See the upcoming issue for details. Read more about Previewing the May Issue 05-26-16
Markets traded down following stronger economic data earlier this week and hawkish Fed official commentaries noted in the most recent Federal Reserve minutes seem to indicate a higher chance of a Fed rate increase in June. Federal Reserve Fed Funds' futures, which monitor the market's expectations of a Fed rate increase, rose to 32 percent during the last week. Read more about Fed Uncertainty 05-19-16
For quite some time this year oil seemed to be the main driving force behind intraday movements of the S&P 500 index. Earlier this year correlation between the changes of oil and the S&P had peaked at a level around 0.8. This was concerning for several reasons. First, oil is typically negatively correlated with stocks since it is an input and thus an expense for businesses and individuals alike. Higher energy and fuel expenses leave less money to spend elsewhere. Read more about A Normal Divergence 05-12-16
In January few might have guessed we would reach the point we see now. We mean, of course, the relative stability of the price of oil. West Texas Intermediate (WTI) crude, now firmly above the $40 mark, has stayed remarkably stable in the weeks since the Doha meeting, when the world's major oil producing countries failed to strike an agreement on a production freeze. In the end this seemingly negative news was irrelevant, and it therefore did not send markets into a tail-spin; the price of oil held steady and gained afterwards. Read more about Commodities Hold Strong With Improving Fundamentals
In lieu of the regular weekly update, we provide a preview of the upcoming April issue of Leeb's Real World Investing, to publish tomorrow.
In the issue, we review several critical natural resources, focusing on lithium, rare earths, and copper. We explain why lithium, in particular, is a natural resource we mustn't neglect.
We recommend two new stocks with strong upside. One is a specialty-chemicals company with advantages in lithium. The other is an electric car company that we think could best Tesla.
See the issue for details.
Read more about April Issue to Publish Tomorrow 04-28-16