Oil is a viscous chemical hydrocarbon that is liquid at normal temperatures. Oil is used as a fuel and lubricant. It is refined to become gasoline, diesel, and jet fuel. Low oil prices are typically associated with the prevalence of economic globalization.
Sometimes, what seems obvious on the surface isn’t necessarily the best way of looking at a situation. The recent crisis between Ukraine and Russia is a perfect example. A very basic fundamental analysis of the situation would lead one to conclude that if hostilities were to break out, one of the results would be a disruption to the oil and natural gas supplied to Europe. This makes sense, since many pipelines and oil/gas fields are located in Ukraine and Russia. What most people don’t realize is that stocks traded here in America could be negatively impacted and could perhaps have their earni ... Read More
The fear of Ebola has caused an increase in pressure towards the U.S. stock markets, particularly in the travel sector and aviation stocks. The concern is real, and if it is allowed to grow in the United States, Asia, or Europe, we could see a significant decline in travel demand that could impact the next few quarters, as my stock analysis would suggest. The impact on the aviation space has been evident already, as we have seen travel-related stocks come off their tops; albeit, much of this also has to do with the current stock market risk, based on my stock analysis. However, a big plus to the tra ... Read More
The S&P 500 recently traded at a record-high, just before tensions in the Ukraine erupted and the global stock market declined as fear of an escalation and war intensified. While the charts continue to show the stock market wanting to move higher after excellent gains in February, I still sense the upside moves will be more difficult to come by compared to what we saw in 2013. Even at this point, the Dow Jones Industrial Average and the S&P 500 are still negative this year. If the stand-off between the Ukraine and Russia doesn’t escalate, I would expect the stock mar ... Read More
Gold and oil are finally seeing some upward lift, but it has more to do with the geopolitical landscape than inflation and economic growth. As I said in recent weeks, the price of gold could be headed higher, but only if we see a rise in geopolitical tensions. That’s what we are witnessing at this time, so there could be quick money to be made. While the Ukraine situation appeared to be settling down, the destruction of a Ukrainian aircraft with soldiers on board will not help the already tense situation. Russia has also halted ... Read More
When it comes to Wall Street, oil isn’t the only commodity investors are seeking stable supplies of—you can add platinum to the list. Besides being home to great beaches, South Africa is also home to the vast majority of platinum. South Africa produces roughly 80% of the world’s total demand for platinum. Together South Africa and Russia (both geopolitical hotspots) mine 90% of the world’s annual supply of the precious metal, which is around 130 tonnes per year, equivalent to six percent of the world’s annual gold production. Labor strife that has gripped South Africa over the last two years at the country’s ... Read More