From ‘America’s most wanted’ repeat, admitted felons Goldman Sachs, we have a good discussion on the oil and other commodities demand cycle this morning…
Goldman Sachs Global Head of Commodities Jeff Currie discusses income inequality, taxes and trade. Here is a direct video link.
Many people have missed this turn, but that’s standard procedure for humans. Few can envision the future as most are fixated on the status quo. Meanwhile across the board from Mercedes and Porsche to Gm and Honda, today’s ICE (internal combustion engine) manufacturers are painfully behind here. Their ad campaigns are embarrassingly pathetic– trying to focus on speed, handling, ‘sex appeal’, the rev of the engine, more cup holders–when they have already lost the race on every single stat and are left holding record inventories of superfluous product that they cannot sell fast enough even with ‘zero’ rates and lax lending standards. The truth is that with a century-long head start, conventional auto manufacturers have fallen far behind and have lost the hearts and minds of thinking people everywhere. Silent, emission-free running is the new cool.
So many worthwhile observations in this clip on the future of oil and cars…
“My Electrician Drives a Porsche” Author Gianni Kovacevic discusses the price, production and storage of oil and his travels across the America in a Tesla. Here is a direct video link.
People lined up around the block overnight just to get on a waiting list for the Tesla Model 3: “…That is a damming indictment on the corporate laziness of the incumbent auto manufacturers…they do not want to go the way of Kodak cameras and Blockbuster video.” And yet they are. Adapt or die.
The Japanese Yen rebounded against the U$ from June 2007 to March 2009 (left green arrow below) prompted highly levered traders to unwind negative carry by selling stocks (S&P 500 in navy) and paying back Yen-based speculation loans.
More recently, the Yen bottomed against the greenback in mid 2015 (far right green arrow) and the S&P has wobbled, but so far levitated near its highs.
Another scene of interest here is the most recent dshort chart below showing NYSE margin debt (in red) and the S&P 500 (in blue) as at the end of March. From record-ever-in-human-history-highs in April 2015, margin debt has come down 14.3% to date and 2.7% month-over-month.
What happens next? We watch this horror show with interest while peering through fingers over our eyes…pass the popcorn.
