Thursday, July 12, 2018

Investment Perspectives Podcast, Episode 1: Oil Prices, Euro Crises, and More

Our leading strategists discuss higher gas prices, hopes that the S&P will move higher, and the Italian bond market and the Summer Euro Crisis.

You can read the full Investment Perspectives here.

In this month's issue:

"Economic Arsenic?"
Mark Luschini
Oil prices have more than doubled since bottoming in early 2016 and, even after pulling back from a recent peak of $72/barrel, are still up more than 10% just this year alone. That, of course, translates into higher prices at the pump where the national average for unleaded gasoline is hovering near $3/gallon (according to AAA), up more than 20% since December. That is the highest retail gasoline prices have been since the summer of 2014. Should the price of oil resume its advance, gasoline prices averaging over $3/gallon during the summer driving months are likely.

"A Seventh Summer of Euro Crises"
Guy LeBas
It’s officially summer, and that only means one thing for the markets: another European financial crisis. Since the summer of 2009, there have been no fewer than seven financial crises centered on the continent that emerged early in the summer. A detailed discussion would most likely exhaust our readers, but here’s a quick highlight of recent summers in Europe.

"Home on the Range – or Not?"
Greg Drahuschak
It is not often that the equity market does not worry about something. There are those times, however, when the worries overshadow everything else. May was one of those times. The White House letter to the North Korean leader canceling the planned June 12 summit rattled the market. Just when it looked like the North Korean summit might be resurrected, potential political disarray in Italy and possible wide-ranging tariffs unnerved the market.