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USIRYY

Hmm... Something Interesting & Sweet is Brewing in T-Bond MarketIEF is a longer maturity, longer duration play on the US Intermediate Treasury segment. The fund focuses on Treasury notes expiring 7-10 years from now, which have significantly higher yield and interest rate sensitivity than the notes that make up our broader 1-10 year benchmark. IEF`s average YTM is significantly higher than US-T Aggregated benchmark's. Of course, the higher yield comes with significantly higher sensitivity to changes in rates, particularly those at the longer end of the yield curve (10-year key rate duration). The fund changed its index from the Barclays US Treasury Bond 7-10 Year Term Index to the ICE US Treasury 7-10 Year Bond Index on March 31, 2016. This change created no significant change in exposure. IEF's narrow focus and concentrated portfolio have been popular, so the fund is stable and easy to trade. The main technical graph represents IEF' Total return (div-adjusted) format, and indicates on developing H&S structure, as US Federal Reserve tight monetary policy seems is near to ease.
NASDAQ:IEF
by Pandorra
How to break the marketsIn a fortunate turn of events, inflation has calmed. For equity bulls, more good news. Yield rates have probably peaked. To stop inflation, you must cool down a HOT economy. Overconsumption tends to increase prices. In an unfortunate (?) turn of events however, the markets haven't calmed down. Some charts suggest that the markets haven't felt at all the decisive rate-hike schedule. A question arises: Are markets so strong not to feel current yield rates? Or is there some kind of lag we must take into account? When will equities suffer, and how much? These are important questions right now that need serious answers. A custom indicator was invented to calculate the average-rate-of-return of equities against yield rates. It attempts to answer the following question: How much better do equities perform YoY against the "safe" US 10-year bond investment? Some interesting charts come up from this analysis: In 1951 yield rates broke out of their long-term bear market. At the same time, the equity market exploded in even higher strength. Note that at that period, equities managed to perform better than the ever-increasing yield rates. It was after yield rates ~tripled that problems arised. Moving to today, we only recently witnessed a breakout in the equity and the yield-rate-schedule. Judging from the '60s, we could even witness a decade of yield rates trying to catch up to the equity market. A simultaneous breakout can make sense. A massive amount of money has flown out of the bond market and had to enter the equity market. Equities may be forced to grow, for now. An incoming drop in yield rates from a pause in the rate-hike-schedule will almost certainly create an outflow from equities and back into bonds. Be prepared. The weakness in the equity market hasn't showed up yet. At any point, the steep upward trend can collapse. A crash will certainly come. But at a time when nobody expects it to. Remember, rates of ~7% managed to break irreversibly the equity market back in the '60s. Ask yourself and wonder. How tight of an economy can opportunistic equities handle? At what point will stability become more important for us than growth? Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
3
TRUMP vs BIDEN : These 7 Charts Reveal AllThese charts will point out not only the difference between 4 year terms, but also the effect of the worldwide Coronavirus on different sectors. Just so you know, I am not advising for or against either candidate solely on what they could do or have done for a certain industry. Instead, this post aims to inform and point out the market's response during each Presidential period. It's also important to consider the effect of Covid (marked by the purple line). 1) DXY / TVC:DXY The U.S. dollar index (USDX) is a measure of the U.S. dollar's value relative to the majority of its most significant trading partners, including the Euro (constituting 57.6% of the weighting), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). Under President Trump, the DXY fell 14% the moment he took office. The DXY then recovered the 14% over the next two years, but dropped again as the Coronavirus crisis was declared a global pandemic in May 2020. Under President Biden, the DXY rose from post-covid lows by 27%, then retraced 12% unto where it is now trading steadily. I'll use the following chart below as a reference to how we will be measuring (the difference between inherited point to exit, as seen by the measuring tool). Change from inherited point to exit: TRUMP: -13% BIDEN (inherited point to current) : +19% 2) Consumer Confidence Index / ECONOMICS:USCCI This Index index measures Americans' assessment of current economic conditions and their outlook for the next six months. The consumer confidence remained fairly stable under Trump, but fell drastically with the announcement of the Covid pandemic. Biden inherited a declining consumer confidence, but the CCI managed to recover with 57.6% after hitting the lowest lows during the midst of the Coronavirus pandemic. The CCI has not been able to recover to pre-covid highs, showing that consumers are not yet comfortable with the current state of economic affairs. Change from inherited point to exit: TRUMP: -19.5% BIDEN (inherited point to current) : -2.4% 3) Inflation / ECONOMICS:USIRYY Initially the inflation rate was fairly stable under Trump, and then started to fall drastically, dropping -95%... until Covid. Since Biden took office, the inflation rate increased by 550%, but managed to drop back down by 62% after peaking during covid. Change from inherited point to exit: TRUMP: -44.8% BIDEN (inherited point to current) : +141% 4) S&P 500 / SP:SPX Trump talked-up the stockmarket as a measure of his presidency when he was in office. (Not that the SPX is something presidents have much control over, but let's take a look at it anyway). The s&p 500 index of big American firms is higher since Biden took office, but it rose twice as much during Trump’s first 1,000 days in office. Change from inherited point to exit: TRUMP: +63% BIDEN (inherited point to current) : +40.8% 5) United States Employment Rate / ECONOMICS:USEMR In United States, the employment rate measures the number of people who have a job as a percentage of the working age population. The USEMR was increasing steadily up to 2% when Covid hit. Under the Biden administration, unlike many European countries, America decided to give money to workers, rather than pay companies to keep people in employment. The share in work fell, but America’s economy bounced back more quickly than Europe’s. Biden administration takes credit for a 4.8% increase since taking office. Change from inherited point to exit: TRUMP: -14.5% BIDEN (inherited point to current) : +4.8% 6) Unemployment Rate / FRED:UNRATE Trump inherited a steadily decreasing unemployment rate from the Obama administration. The UNRATE continued to drop until -25.8% after which, again, covid. It is true that the Biden administration inherited a tough one here, and there has been a 15% increase after bottoming out during April 2023. Unfortunately, this chart seems to be steadily increasing. Change from inherited point to exit: TRUMP: +36.4% BIDEN (inherited point to current) : -39% 7) Money Supply / ECONOMICS:USM2 US M2 refers to the measure of money supply that includes financial assets held mainly by households such as savings deposits, time deposits, and balances in retail money market mutual funds, in addition to more readily-available liquid financial assets as defined by the M1 measure of money, such as currency, traveler's checks, demand deposits, and other checkable deposits. Historically, when the money supply dramatically increased in global economies, there would be a following dramatic increase in prices of goods and services, which would then follow monetary policy with the aim to maintain inflation levels low. Trump administration inherited a steeply increasing supply which kept increasing rapidly. Currently, under the Biden administration, the M2 seems to be moving towards an equilibrium. Change from inherited point to exit: TRUMP: +45% BIDEN (inherited point to current) : +7.7% ______________________ Note that these are not THE ONLY charts we can look at. In fact, I encourage you to post yours below! Which other measures are you looking at? Treasury, perhaps Bonds? Feel free to share them and lets compare!
TVC:DXY
by CryptoCheck-
6
Inflation Wins, We LoseThere are two kinds of inflation, the normal one and the dangerous one. Printing money creates inflation. The kind however which is not dangerous to the foundation of the economy. With money printing, currency loses value and prices react accordingly. Nobody gets wealthy from money printing, and in a sense, "nobody" gets poor. By nobody I mean the economy as an average doesn't really get hurt. Inflation however widens the gap between poor and wealthy. Poor get poorer while rich get richer... Inflation analysis can be very simple. If one believes in simple support/resistance levels from consolidation patterns, then the following picture can be drawn for the standard inflation chart. For further validation, we can try analyzing commodities like oil. In the main chart, crude oil value is divided by the "total value of money in circulation". The value of money is the yield percentage. A massive consolidation pattern formed in 1986-2002, on which we are now supported. I believe that price cannot drop much lower than the point we are in. Dips can be expected, but in macro scale the chart is bullish. From the chart above, we conclude that oil prices (inflation) will grow compared to yields themselves. Each increase in yields (inflation fighting) will lead to higher oil prices (higher inflation). Charts like these prove the Catch-22 phenomenon we are in. This is the bad kind of inflation. This inflation is un-fixable. There is a plethora of charts that prove what I say, that inflation is unfixable. One of these charts is GOLD*PPIACO. @SPY_Master used the GOLD*DBC chart as a measure of inflation. Gold*PPIACO can be considered as another very-long-term inflation measure. Commodity production cost is bull-flagging against money supply itself. So okay, we all expect more inflation. And surely, equity prices have priced this in, right? Wrong. Equities have priced-in that the FED is controlling inflation. Investors expect both inflation and the FED to calm soon. So, equities have priced-in something that will never come. An investment can suffer when the investor judges the situation wrong. An investor who has understood the situation, "cannot" go bankrupt. Equity prices show that markets ignore the FED. In the chart above, DJI is divided by the yield curve as an attempt to measure the ability of equities to grow in a progressively tighter economy (falling yield-curve, negative yield curve). Even with all that money destruction and yield increases, equities are making all-time highs. The markets are very stubborn. The yield curve may describe the "ease" the market shows for equities. In normal times, the yield curve is positive, long-term yields are higher than short-term ones. This encourages short-term borrowing and stimulates the economy. As the yield curve steadily lowers, short-term money borrowing is less and less interesting for investors. (In the Spaaace!!! idea linked below, you can find more information about the DJI/yield-curve chart) High inflation and stubborn markets by themselves don't render equities as worthless. After all, equities survived in the stagflation period of 1970s. While the stagflation outcome can play out, there are things that may happen before it. There are some charts which are very concerning for equities... We tend to talk about the crypto bubble, and ignore the equity one. Equities have been consistently growing for the last 15 years. But thanks to what? Are companies in a "better shape" than they were in 2010? Sure technology has evolved, but from dependable devices we are now filled with unstable gadgets. Consumer devices as well as corporate ones, are more vulnerable than ever before. Security gaps are now appearing from big-tech companies to banks. Sure, issues like these were commonly occurring throughout history. But let's consider, is the immense equity growth representative of the dependence we can have on companies and their products/services? Are equities growing because of actual innovation, or from the easy way of derivatives? This chart shows the diminishing nature of derivatives. They are exponentially losing value, but their effect is much bigger than their cost. A purchase of cheap derivatives can bubble-up anything you can hope for. Where does this chart lead us? This chart attempts to calculate the effect of derivatives in QQQ price. Before 2020, QQQ consisted of a "stable" amount of derivatives. Price moved in the channel. In 2021 a bull-flag formed and launched the chart in incredible new highs (where we are now). It is one way to visualize the immense effect of derivatives, especially in big-tech stocks. (More about this chart in the "who would you trust with your money" idea linked below) Even if Bitcoin is "overpriced", it will be the winner if this golden bull-flag breaks out. Bitcoin seems to be beating many investments. Even if it may not be considered a commodity, it certainly behaves like one. Even if equities grow, each upwards move for equities, will lead to much higher prices for Bitcoin. Just like Bitcoin is bull-flagging against the most powerful of equity bubbles (QQQ Derivatives), commodities are bull-flagging against the most stable of equities (DJI) Not all equities are grim though... We may be witnessing a massive wealth transfer away from US corporations. In this idea, I attempt to analyze the massive shift of balance that we may be witnessing. While much harm has come to Europe from the war, almost everything is priced in. If the chart is correct, it means that every upwards move for US equities will push Germany further upwards. Germany has been enjoying a massive influx of money from the entire EU. After swallowing the entire European market, it is now forming a bull-flag against Europe and other countries. Germany as well as emerging markets prove a significant challenge for the US. These are bad news indeed for US equities... Tread lightly, for this is hallowed ground. -Father Grigori
NYMEX:CL2!
by akikostas
6
You against inflationMoney printing has been a double-edged sword. One one hand ample liquidity helped the exponential productivity of the economy, on the other hand inflation hit hard. In periods of stagflation like the 1970s, immense inflation created an impenetrable ceiling for equities. In periods of extreme deflation (2010s), equities bubbled. It is interesting that in this period, inflation figures were are all-time lows, with immense money printing. With this chart we attempt to measure when and how much equities managed to overperform the weight of inflation. There are two methods of calculating inflation, one is total money printed, and the other is the "cumulative inflation". If we analyze SPX compared to money printed, this would be the outcome: This is not very helpful, since SPX is too closely related to total money printed. To measure "cumulative inflation" I attempted modifying this chart by @SPY_Master DBC*GOLD is a good estimate of inflation. Since we don't have enough historical data for the DBC index, we analyze one of it's cousins, the PPIACO index. DBC is an energy-focused mutual fund, while PPIACO measures the production cost. We assume that PPIACO*GOLD is a suitable replacement for DBC*GOLD. We end up with the cover chart, which I will briefly analyze, since it speaks on it's own. For almost 10 years we were attempting at penetrating the ribbon, to no avail... These fib-retracements are very beautiful... SPX: NDQ: They all prove that there is massive weight on top of us. After almost 10 years of trying to get back inside the high-energy-level above, can we do it now? Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
4
MV=PQ RevisitedHistorical data can be hard to compare against modern ones. The longer back an analyst goes, the better the results of their analysis. 100 years of yield rate analysis may seem enough... 5000 years of interest rates however is a whole new story. Money has been as cheap as it has been for the past 5000 years. Incredible numbers... Source: www.trustnet.com Fun Fact: Banks have existed since the early days of humanity! Unsurprisingly, trading is not a modern invention. Many agree that yield rates have been too low and equities too high. Some go against the flow and suggest that the stock market bubble has yet to come. I have been looking here and there, trying to find the reason the .com bubble was created in the first place. With that in mind I hoped that I would find when the next one will come... Price has just skipped through the previous ceiling, and is now in a new territory. The drawn channel suggests that SPX hasn't reached the top of its channel. There are many more comparisons that may suggest that equities haven't peaked. By comparing DJA with one of its subsets (DJI) we have concluded that the DOW hasn't saturated yet. This analysis above is as classical as it gets. While many thought equities would die ... ... the Bane of Traders has trapped many of us, myself included. Big-Tech dominance inside Nasdaq Composite suggests that a .com bubble may be brewing inside IXIC, just like we saw in SPX/CPIAUCSL in 1994. Onto the basics of financial now. MV=PQ is one of the foundations of how economies function. For more information read my previous idea: For simplicity reasons, we merge PQ. I don't have financial data for each one of them. PQ for the US is considered as the GDP. Another example of GDP can be SPX, which extends beyond the limits of US soil. GDP has been slowing down... USGDP is the total cost of all products produced in the US. A slowing GDP means a slowing net-production of the US market. If productivity hasn't changed significantly in the past decade, a slowing GDP may be due to falling prices. And with yield rates nearing zero in 2020, we can safely say that inflation has turned negative in the US. A slowing GDP may also mean that equities have slowed down. This gives more importance to the incoming-equity-bubble scenario. An equity bubble may come for some, but not for all. The tide has turned in favor of NDX against IXIC, and DJI against DJA. Charting suggests wealth accumulation in a smaller part of the main idices. GDP may be breaking out. With money velocity (main chart) in record-low values, we can expect faster money flow in the years to come. That means increased productivity/inflation/GDP. As expected, long-term inflation may also be breaking out of its decreasing trend. Don't forget: High inflation may be a problem for some. An increased GDP growth caused by high inflation will certainly help the chosen big-ones. There cannot be high GDP with nobody profiting from it. To get rich you must inherit or steal. -Aristotle Onassis In the end, trading hasn't changed at all in 5000 years. There are still pirates, kings, queens, emperors and peasants. Markets will march upwards with or without us. Tread lightly, for this is hallowed ground. -Father Grigori
FRED:GDP
by akikostas
1
World Wars & US Inflation From 1914This is the US Inflation Rate (YoY) from 1914 until 2022. Symbol is called USIRYY and it measures the Inflation Volatility in the United States. With the War going on in Ukraine, and Russia trying to force its way through, I took the liberty of looking into the following: - How Global Wars Affect Inflation - How US Inflation Reacts to External Wars - How Wars Affect the Financial Markets You can see the time-lines, it's all laid-out in the chart (graph). I took all the Major World Wars and events that significantly affected, not only the US Inflation, but Inflation itself. First of all, the US Inflation Rate (USIRYY) tells me the following: * When the US was involved in a War, we can notice that the US Inflation spiked. * Most of the times when US was not involved in an External War, then Inflation dropped. That's because of War & Uncertainty Sentiment around this "terrific" word. War does not bring anything good, in fact, in only brings bad times. People die and global sentiment gets super-negative. This of course, leads to... you guessed it: Market Crash. Why? Because after or during times of War, there are Recessions and Depressions. Supply Chains are disrupted and the Global Economy falls on its face. What about looking at things from a Technical Analysis perspective? * Symmetrical Triangle: and the only way is UP! I will give you points which I believe are worth keeping in mind for the next Market Crash. First of all, let's be logical about this. Winter is coming and it's only gonna get worse before it gets better. As Inflation spiked to a 40y high, the higher powers intervened, in an attempt to cool the Inflation spike off. I'm talking here about the Federal Reserve (FED) ramping up the Interest Rates. This is the Effective Federal Funds Rate (FEDFUNDS). Can you see the break-out? They want to calm down Inflation, but they can't. Why? Because this is no ordinary Inflationary period, it's a long-lasting thing. One of those hyperinflation, deflation, stagflation, or whatever the heck these experts call it... :) The Volatility Index (VIX) tells me that another spike in Fear Sentiment is inevitable. I'm in love with Elliott Wave Analysis, so I labeled this next chart. This is the United States Consumer Confidence Index (USCCI) and it measures exactly what its name says, LOL. When it drops, people are freaking out. When it rises, people are optimistic and the Markets are going up. Daaaa! With all that said, what's the bottom line here? I believe that periods of terror are gonna hit us all. Are we having World War 3? Who the heck knows? All I know is that there are more pieces to this puzzle: United States 10Y Bonds (USB10YUSD) have reached the Support, and a spike bigger than the Covid Pandemic has started: The 10Y Treasury Note Yield (TNX) have broken out of a 40y down-trend: Isn't it ironic how it synced with the Inflation 40y high? Damn! Germany 40 (DAX, GER30, GRXEUR) is doomed. Fractal sequence, Descending Channel, and a "beautiful" ABC Elliott Wave Pattern. So, how can you prosper from all this? Metals could be a good hedge. Gold (XAUUSD) just broke out of an important Bearish Structure. Maybe it will go up. Natural Gas (NG1!) & Crude Oil (USOIL) however, are showing Bearish Reversals. Bitcoin (BTCUSD) is Bearish until further notice as well. But this may become the new currency moving forward. In times of terror, the banking systems might need to change. Cash and Card is so '00. WHAT'S YOUR TAKE? WAR OR PEACE? Leave your commend down below. Cheers! Richard
ECONOMICS:USIRYYEducation
by Lionheart-EWA
5
Month on Month US Inflation Harmonically Set to Rise to 1.94%This is a followup to this year-on-year inflation chart idea posted back in June 2022: The YoY US Inflation rate has been on a trend of going down since it tested the 1.414 PCZ of the Bearish Butterfly above, but recently we have seen the MoM rate slow its descent and form a bottoming pattern with MACD Hidden Bullish Divergence at the 200-Month SMA and now we can see that the MACD has crossed positively as the inflation rate has broken out of its recent range. This harmonically puts it into position where we will likely see it at least hit the 0.886 retrace to complete a small bat pattern, but it could go out of control and go as high as the 1.618 Fibonacci Extension area all the way at about 1.94%. One reason I suspect for the sudden stop of the inflationary decline is due to the Fed not raising rates high enough, fast enough, and then keeping them the same for the last few months. It would also seem that the year-on-year inflation rate is setting up for a similar rise, showing Hidden Bullish Divergence at the Moving Averages and likely one that will result in it going to test higher highs to around its 1.414-1.618 PCZ once area once more before ultimately crashing back down from these highs once the Fed starts to go heavy on rate hikes again. Though the timeframe may be shorter than how it is presented on the chart, I do still suspect we will have action resembling what is projected on the chart below until the Fed starts rising rates aggressively again: This does not mean I think stocks will go up, that the dominance of the dollar will go down, or even that I think the consumer credit situation will improve. Instead, I think the rise in inflation will be fueled by energy, import, and export costs, and that this will be very bad for: Stocks, Consumers, REITs, and Banks overall, and that the Bond Yields will continue to rise at an accelerated rate.
ECONOMICS:USIRMMLong
by RizeSenpai
US inflation data is at multi year resistance..Us inflation is at multi year resistance.it shows inflation has already peaked. once it will start coming down markets will rally to the upside. Will markets makes new ath sooner or later ? Well who knows?? Ask yourself that question. Will fed stop rising rates for now? Very unlikely. Will fed could consider lowering the basis points ? Most likely. Will fed do it in upcoming meeting (23rd sep'22) this month? Unlikely.
ECONOMICS:USIRYYShort
by EsCApetHEmAtRiCS
1
FEDFUNDS | Too TightThe point of TradingView (and being a human/trader in general) is to learn from your mistakes. I did make some mistakes. Perhaps this idea by itself is another mistake. But I cannot do any different. I must speak out about what I see. For the past year I tried to understand the pressures that are pushing prices higher, equities lower. It is important in analysis to avoid the mass, the "common truth". We all have expected a future of uncontrollable inflation, extreme prices and The Great Reset. The place where everything is too expensive to buy, and we will have to live with coupons. While some of these may come, it is important to analyze what isn't coming. Oil prices have been paired with the dollar (with the petrodollar). Many expect oil prices to explode even further, while "dollar is losing value" and "hyperinflation is imminent". Some charts however show a different picture... WIth the 2M chart warning of downward swing, and with the 3M chart showing divergence, the future of oil may not be as explosive as we may believe. But that is in relative terms. The strength of money seems fated to increase a lot more. Which in relative terms will constitute oil cost to be viable. In the main chart, it appears that oil is moving into what appears to be a Wyckoff Distribution. And oil is not the only one who will have trouble with the high-yield environment. Until now, the usual equity-bond investment scheme has performed tremendously. This trend is now changing. With a significant trend violation that occurred last year, it seems that we are entering a new period of investment strategies. From bonds as a hedge against equity weakness, investors should seek alternatives. The old way of doing things is broken. Commodities will be playing a significant role in the future of investments. It is in our power to find the new way of doing things. Tread lightly, for this is hallowed ground. -Father Grigori P.S. A link to the indicator I am using.
NYMEX:CL2!
by akikostas
SPX | Another LieOrdinarily, I wouldn't contemplate them... but these *are* extraordinary times. - G-Man A bank just went broke, oops! It was certainly something we expected. With money literally burning, these kinds of events are expected. So what might be ahead of us? The rate-hike schedule went relatively smooth sailing until now. But just last week something changed... When the first bank failed, the consensus shifted from calm to fearful. Now the market is pricing-in the coming yield-peak. This goes hand-in-hand with the yield-curve correcting. At that time, the market expects only short-term yields to increase, while long-term ones will slowly and steadily drop. Back in 2018, we were begging for the FED to lower the interest rates so as the economy to "grow". Little did we know, that by lowering rates we were pulling the rug from underneath our own feet. Equities growing when cutting rates is cheaty... Now we have the same. We beg for the FED to stop burning money and calm the liquidity crisis that is building-up around us. This bankruptcy may prove an event that causes even a premature FED pivot. At any rate, both charts and simple logic call for a pause in the rate-hike schedule. So what can we expect? What I talked about in the original cake. Unsurprisingly, I expect equities to grow next year. Their price will increase while their true "value" will drop. While a sell-off may occur in the weeks to come, this will give the signal that the bottom is in. I believe however that this capitulation will not be the main "event". The 2018 "Recession" had some violent drops. A sudden 20% drop in 3 months in Q4-2018 was definitely something that conquered the headlines. Passing through that gave the signal that a bottom was already in. The same consensus may be brewing now. Surely the FED cannot tighten further. Surely they will step-in an cautiously calm the financial markets. The calm will come, and it will stay for some months. Until the calm erodes. And if rates drop, the economy itself will silently erode. Until the building collapses, at a time nobody expects it to. Tread lightly, for this is hallowed ground. -Father Grigori PS. There are two ways to become rich. Theft and Inheritance. -Aristotle Onassis, Billionaire For the rich to get richer, they must rob. They are robbing the unknowing gamblers/investors. In the era of information, in order to rob you must fool the public by changing-up the picture. Present the eroding building (economy aka. SPX*yields) with a luxurious cover (SPX). And hide the treasure in the dirtiest place of all. Find the treasure. Don't fall for the trap.
SP:SPX
by akikostas
6
M2SL | Mo Money Mo Problems!Oh boy, many of them problems... Sometimes there are cycles, some cycles are shorter than others. In chart analysis, we are familiar when we analyze trends. Either short term or long term. The economy does not function only in trends. There are cycles. The most common / important of cycles is the yearly one. Unfortunately, cyclic patterns may prove tricky to analyze. But they are very important. Since I haven't taken the time to create TradingView indicators that calculate cycles, I will instead use a spreadsheet. For the following charts, I basically take all historical data of a cyclic chart and export that data. For every week or month, I calculate the average distance from the mean. With that, I try to calculate the "expected distance" from the mean, for each time of the year. Natural Gas prices one might say, are lower during the summer months. So an unusually high price in summer may become explosive during the winter. Today's main subject will be money supply. Since the January's M2SL data hasn't yet updated, I will try to guess how much money supply we can expect the following months. There is a cousin to the M2SL index which is updated weekly, and it is WM2NS. This index however as you can see on the chart above fluctuates from M2SL throughout the year. So, the regular WM2NS price should be adjusted based on it's cycle against M2SL. This curve shows the expected yearly fluctuation of the ratio, compared to the mean, Specific care has to be taken when we calculate the "fundamental cycle duration". Some cycles last 2 months, 3 months, or 6 months. The fundamental cycle of the economy is 3 months which repeats 4 times during the year. While this may prove irrelevant, It is incredibly important in the "cycle spectrum" creation. If we consider a 1M duration of the fundamental cycle, the chart isn't as representative as the 2M one. The Diesel / Gasoline cycle is incredible. This comes to prove that these two are highly correlated. With the same method we can compare gasoline price with crude oil price. For fuel prices, it seems that the end of the year can serve as a good baseline for the outcome of the next year. Absolute and relative are at their minimum in this time of year. Similar charts can be drawn for DJI. While more chaotic (wider error lines), weeks 10 and 44 (March and October-November) appear as the weakest periods of the year. So what M2SL price can we expect in the following days? I am an impatient man, I cannot wait for the results!!! After a substantial drop in money supply, one might fear that further downside is to follow. There are charts that calm such fears. Price has never touched the Quadratic Kernel indicator (a form of historic moving-average), and it may never touch it. When RRPONTTLD increases, money supply decreases (I am oversimplifying because I don't know the exact specifics). Bullish stochastics may signal more upside for money supply. Finally, I will analyze the protagonist chart: Suddenly, the 1.2% increaase doesn't sound that extraordinary... Sometimes, a simplistic analysis like this one above, may prove correct like this one below: Final thought: With inflation higher than expected and money supply about to increase yet again, how high of an inflation can we expect? With commodities bull-flagging against money supply itself, and Bitcoin bull-flagging against the Tech-Bubble, things can get pretty bad for equities... Tread lightly, for this is hallowed ground. -Father Grigori PS. I have analyzed several cycles for different kinds of commodities. If you are interested ask me so as to post them.
FRED:WM2NS
by akikostas
9
SPX | Let The Roaring '20s Begin!As the famous billionaire said in December 2021 (elon), the "prophet" who is apparently loved and trusted by everyone. I don't know why... Disclaimer, SPX by itself will probably not follow this path, things are quite complex as you will soon find out. First of all, Recession is not something simple. Everyone talks about it, but it is not always meaningful. This year, equities weren't in a recession. While on the one hand the prices dropped, the denominator (dollar value) increased. The 2022 "Recession" is not apparent, we have just hit the mean. Note that the channel is automatically drawn from 1950 using the Log-scaled Linear Regression indicator. Taking note of the above, we can interpret that instead of SPX following the 1920's bubble, the pair SPX*yields will. These charts above give us a valuable lesson. Until now, a .50 increase in yields had little effect on the direct equity value. A monthly rate hike of 100 points had little meaning in the 80s. A change from 15% to 16% on yields for example, is just a 6% increase in the immediate price of money. A change from 0.25% to 4.50% in 2022, is an 18x increase. This means that the immediate effects of such an increase are dramatical. The 2022 "recession" occured just because price was so rapidly revalued. The change in dollar value is "effective immediately", when a rate-hike comes. Everything measured in dollars is immediately repriced accordingly. Even if price may take time to show it, cost does change. The USOIL true price changed immediately. US investors enjoy a massive discount in oil price, while the rest of the world "enjoys" a bull-flag. But this phenomenon will not last forever. Rates will eventually hit a ceiling and the FED will pivot. I will now try to "estimate" when the tightening schedule might end. Had the 2020 crash not happened, this would be an average rate-hike schedule. It lasts 7 years. This puts the end of the tightening schedule to the end of 2023. So to add these together, we expect a QT environment until the end of 2023, and stable decrease of yield rates starting in 2024. Now I will try to make sense of them all, and try to find a probable behavior of SPX based on the yield hike-drop schedule. For simplicity, I pretend that the terminal rate is already here (or priced in). After all, the US10Y chart shows signs of peaking. We can conclude that even if this is not the terminal rate today, and based on the FED announcements, the market has already priced in the full extent of the tightening schedule. I will return to the modified USOIL chart. We have seen that in reality, the price for oil (the main contributor to inflation) dropped a lot thanks to the tightening schedule. The USOIL/yields chart is like a time machine. It shows the final price equities/commodities will take when the dollar-repricing (rate hike) circles around the economy. We can conclude that the rate hike schedule was successful and will cool down inflation (inside the US) With all of the above, it is safe to assume that: Inflation has peaked (for now?). The rate-hike schedule / QT environment will persist until the end of 2023. From 2024 we can expect rates to drop. By multiplying or dividing with yields, we can make conclusions for the reason why we were not in a recession this year. Since equities and yields are multiplied to calculate the true equity value, we don't have a clear indication on why the true value is increasing. Charting SPX/yields can help us understand "thanks to who is the true SPX chart increasing". By analyzing them, we can get more indications on the future movement of SPX. We assumed that yields have nearly peaked. They will remain constant or increase a little for the months to come. Equities have no reason to continue a sell-off now that yields have almost peaked and the worst of inflation has passed. So we expect equities to increase compared to steady yields in the following months. Taking all of that in account, we can end up with the following charts: A probable scenario: An improbable scenario: More about the trends in the following idea: Moral of the story, always have a plan B. Make sure not to waste it creating a bubble. When inflation drops and equities bubble, there will be no reason for rates to increase. Just like in the 2018-2020 Recession, we will beg for the FED to drop rates to feed the bubble. When there is no more room for yields to drop, equities will. The equity market is infested with weapons of mass destruction (derivatives). It is bound that we see a burst of this long-term bubble. Final question of the night: Why would anyone print an astronomical amount of money to make so little in the end? Tread lightly, for this is hallowed ground. -Father Grigori PS. I've talked about how the 2018-2020 Recession no-one remembers is a micrography of the 2008-2009 Recession. For reference, look at the rate-hike schedule, and notice the little "step" that appears in the end of the 2008 rate-drop schedule. The same appeared in the 2020 crash. On the left, the modified-GFC is visually similar to the standard GFC chart (with and without yields transformation). On the right, the bubble SPX experienced in 2018-2020 now looks like an actual recession. PS2. This crazy idea I posted may not be so crazy after all... PS3. In 2025, Nostradamus (another pseudo-prophet) told that WW3 would come. The same I heard from many others. endtimeheadlines.org PS4. The two sources of wealth are theft and inheritance. -Aristotle Onassis PS5. I am not a trader, I am a father. Take what I say with a grain of salt.
SP:SPX
by akikostas
41
The DOW Road has Ended. Now Welcome Hyperinflation.The market has chosen a way to profit throughout all these years. This is the end of this way, QE lead us here... in this dead end. Equities was the "gold" of the time that passed. Now this is changing... If you read until the end of this idea, you will realize that a lot is changing. I will briefly analyze this chart and what it tells us. This is the ratio of equities compared to yields. I have modified yields using an equation I made up. This channel is drawn from 01/01/1950. This is a date I use since this is the day America 2.0 was born. I have talked about it on the MV = PQ idea linked in the end of this idea. Well, we have just missed this trend... Right now we could be witnessing the very beginning of US 3.0. Long-term technicals on this chart are deadly for DJI. So this chart above suggests that the new big thing is bonds. As you will now realize, this is not the entire story... The following are IMPORTANT: There are some things that trouble me... SPX compared to energy is showing signs of stagnation. There is substantial drop for equities ahead of us. So okay, energy cost is going to increase compared to equities, that is something we have taken for granted the past few months. We have talked about this a myriad times... This is not the entire story. This chart below shows that energy increases will overperform yield increases. So in a sense, inflation (calculated from commodity cost) will overperform yields. Inflation is poised to increase much more than yields. Until now yields were consistently decreasing, now there is no more room down for yields. Even if yields remain stable on today's levels, this chart suggests that energy prices will still increase. If yields increase, energy prices will increase more compared to yields. This is a recipe for hyperinflation... This chart below, shows more evidence towards the same conclusion... Basically, "long-term inflation" (PPIACO*GOLD) is creating bull-flags compared to "total money created from yields" (mod-yields*CURRCIR). This means that the cumulative price of production cost and gold cost, will substantially increase compared to what bonds yield in total. Conclusion: Chaos. No matter what politicians want, things are out of control right now. These charts suggest that. This is a long-term phenomenon which cannot change from free will. Nature is more powerful than we could ever hope to be ourselves. These charts are simply scary. I don't have the words to explain much. The charts speak for themselves. I am sorry for the rushed post, and any mistakes that I might have done. I began writing about DOW, and I found out that there is much more happening right now... We all knew that we could have increased cost of energy, and stagnating equities. I couldn't put the scale of them in perspective. I hope that these charts gave you some perspective, they certainly gave me a clear perspective. PS. While we cannot avoid what is coming, we have the power to choose what boat to take. The stranger told us that we cannot be in two different boats. We are basically obliged to choose our path. Tread lightly, for this is hallowed ground. -Father Grigori
TVC:DJI
by akikostas
10
Warning DrumsJust a short update for today. It is important, so it deserves an idea on its own. For the first time since 2019, the FED is now officially giving money into the system. What could this mean for the US economy? Are they sensing weakness or is this just a response to the recent banking crises? Now let's look at the history of bailouts. Price made a higher-high, and stayed high for months until the GFC. Similarly in 2019, without anyone concerned about recession, the FED pivoted and cut rates. This might be the beginning of more bailouts. Who knows how many more... There is a big difference however... Historically, during periods of economic weakness, the money input was higher than the output. Now, the scale of money going out of the system is astronomical. So much so, that is literally bull-flagging. Money supply metrics cannot be ignored. Record low RSI for money supply. Beware, these scale of these events is incalculable. The numbers we witness here are massive (RRPONTTLD). The money supply monster we have created is more powerful than it's creator. What must be done to fight it? And who will be the first to fall? Do note that RRPONTTLD is a sum of agreements. The effect of such a dramatic money drain out of the system will take years to show itself. This M2SL drop is just the tip of the money-berg. Tread lightly, for this is hallowed ground. -Father Grigori
FRED:WORAL
by akikostas
The Case for UnemploymentUnemployment is tricky. You just cannot announce high unemployment. The political damage is too much to take. But unfortunately, the time comes when unemployment just increases... Every sane person would want the economy to remain calm for as long as possible. This is not sinister or bad. After all, it is in the duty of Governments and Central Banks to keep our daily lives as calm and peaceful as possible. Bad unemployment data is inherently bad. It is worse than bad inflation data. So it is always a tricky situation... After the inflation chaos, calm has return to the financial world. Volatility and inflation is lower, equities are higher! So all is well! Not only inflation is lower, but also unemployment! With an ultra-low rate of 3.4%. News just couldn't be better! Initial claims is also breaking down, signaling better days ahead... After all, low unemployment is good! Right? Not so fast fella! Low unemployment is good for, well, employees! But it is bad for corporations! Finding skilled personnel is incredibly hard. So much so, that most companies underperform. They just can't grow! I believe that unemployment does not necessarily break the economy. And the economy does not necessarily break the unemployment. It is a mixed bag... Sometimes, businesses benefit from high unemployment. If the antagonists fail, others get their workers, and most importantly, the piece of the pie! Some companies grow while others fail... Believe it or not, low unemployment is risky. Especially when it is in a 54 year low... It just cannot go lower! Recent unemployment data is perfect. However, Continuous Jobless Claims (USCJC) may give us a new perspective... It is at times like these when we see conflicting data. Continuous Claims increase while unemployment rate is decreasing. At that period, the official unemployment rate was making lower lows! This is deeply concerning. Especially when it is eerily similar to 2020. Perhaps it is a shift of balance right before a crisis. Perhaps a period when long-term employees lose their jobs since companies attempt to cut down costs. Instead, they hire less skilled workers with lower wages, perhaps for part-time jobs. This may be the last attempt of companies to stay afloat. It is also the last attempt for families to stay afloat. High food prices necessitate work at all costs, no matter how low... A crisis may be brewing... A Black Swan one, just like 2020. The Big Tech bubble is literally hollow, full of derivatives aka weapons of mass destruction. And the scale and the ramifications of such a crisis are still unknown. (By inflation pressure I mean the amount of work the FED does to fight inflation. While this chart increases, inflation gets out of hand) Perhaps all of this is meaningless. Only time will tell what will happen... WW3 commence I guess? Tread lightly, for this is hallowed ground. -Father Grigori
ECONOMICS:USCJC
by akikostas
3
The Bear Party Hasn't Even Started YetEvery major crash in modern history came after rate hikes completed. Either during the plateau or during the first cuts. No bulls can explain how we're going to avoid that fate this time. We hiked twice as fast as 2007 and 2018 hikes, yet somehow there's gonna be a soft landing? Yeah right LOL It's already looking like a broadening wedge like 2000; and about to break the 13yr trendline for the first time since 2020. See inflation chart below: Worst case scenario(red), we get rapid deflation that causes a 6 month bull run at first, but ends with devastating crash. Like 2019, however we can't afford to write more stimulus checks. So there will be a depression, not a recession. No V recovery. Best we can hope for is more inflation(yellow); so the government can try and print it's way out of debt. Chop sideways roughly -50% +100% for a decade or more. Pipe dream is green, the Fed managing to thread the needle and get inflation between 0-3% for years to come. All while the U.S. Treasury manages to service it's interest payments, despite failing to close the gap between tax receipts and spending. This is not going to happen. It's physically impossible to produce 5M qualified workers overnight to fill the gap between job openings and job seekers. Layoffs won't help either. By then the recession is in full swing. Higher taxes coming as well. Growth is dead.
FRED:EFFRShort
by Nicklaus68
4
SPX | Early AccessI have posted about this chart before, but I wanted to show it more clearly this time. Above we see SPX, the standard chart. Below we see a custom index I invented, which is VVIX/VIX. It is a neat way to make sense of the chaotic nature of VIX. To clear things out, I have hidden both charts and instead I show an indicator called WLSMA. It is tremendously helpful to smoothen the "fog" the standard chart creates. In the end I will add the link to the inventor. I took great care on drawing these trendlines. I tried to get into the mind of the investor back then, and drew the lines that best made sense, and could provide some actual meaning. On the chart, red arrows are drawn. These are the times when the VVIX/VIX chart violates decisively it's trendline. On the same dates, I created arrows on the SPX chart to get an idea of just how early this method warns us. While this method may not be useful for traders (I am not a trader, I am just passionate analyzing charts), I find it incredibly interesting on how these two correlate, and make actual sense. I find VIX by itself completely useless. Don't get triggered by what I said. How on earth is VIX = 20 a good buy-in strategy? It is as about as useful as RSI getting below 80. Again don't get triggered by it and flame comments down below. Numbers and money don't mean nothing. It is perspective and values that make sense. Now onto some charts: In 2008 we were notified from VVIX/VIX all the way back in February of 2007, and got a confirmation on April of 2007. This is not a typo, 1 year before the GFC. Curiously, this happened when FED's tightening schedule was near it's end. Also interesting is the April-September period of 2008, when the VVIX/VIX chart showed signs of hope when it broke above it's trendline. And compared to now: We can conclude similarly for the 2010-2015 period. And the 2016-2020 period. And the 2020-2023 period of course. Are we approaching this hopeful period before the crisis? A comparison between 2008 and 2023, in the period of deadly hope. Link to the inventor of the WLSMA indicator: Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
4
SPX | A Trader's MindThe anxious moment when your investment goes through a period of slowdown or drop. When everything is good, everyone is happy. Nobody thinks twice when a market is growing. It's at that point of the first lower-low, when an investor loses their sleep. And it can be suffering when insomnia is prolonged. The 2022 Recession will be remembered as the most confusing and pressured of all. One whole year later, and still we don't sleep all that well. We hoped that things would clear out by now. Instead, the situation is more confusing and chaotic than ever! Being in a period of all-time-high records, I feel proud. Yet, the responsibility in my work is most important than ever. And there are many records occurring right now... For the first time, Money Supply has taken such a dramatic downturn, with an incredibly steep yield-curve inversion. With 470B burned until now (M2SL chart) and with such a prolonged inversion, it seems that a new era begins right before our eyes. A period when money is scarcer and scarcer. We were crying all these years that money loses it's value. Now that money is getting much more powerful, we are still crying. This kind of mentality doesn't help us. It can certainly get us pretty far, but in the wrong direction. We should dedicate our thoughts and efforts into deciphering this incredible new era. I am not optimistic for this new era for many reasons, an explanation of these reasons is not fitting in a trading platform. We are facing serious humanitarian problems that we choose to avoid, or problems that we create (un)willingly. To figure out what happens, we should begin thinking spherically. Isolating equities doesn't get us far. It is the balance of powers that is changing in an instant. -- Tricky Bear Market Trendlines Bear market analysis is not as simple as many expect. The bottom is not that easy to pinpoint. There are many bottoms that precede the terminal bottom. In each one, everyone trades as if the bottom is in. Most of these times, the bottom is not in... I've seen innumerable charts this past year, claiming that the bottom is in and that we should trade it. Yet, none of them ended up true Breakout, divergence, MA crossover, over and over and over again... The same mentality occurred in previous recessions... After these instances, more downside followed. Are we sure we are out of the woods? -- Hollow Equities The Stock Market is not what it used to be. The major indices are not priced just by stocks, but from derivatives also. The following chart attempts at calculating the percentage quantity of derivatives. The higher it gets, the more "hollow" prices get. More info in the following idea: How much should we trust index prices given that they are filled with weapons of mass destruction? -- Cash instead of Stocks From 1920 to 2020, Equities were the go-to investment. Currency was just the mechanism to buy into equities. Now a paradigm change is beginning. Progressively higher yields and steady equities shape an entirely new understanding of what investment is. From investment in equities, to investing in money itself. A horizontal movement is expected for DJI against yields. Equities can increase as much as yields allow them to. Not the other way around. Until now, equities dictated yields. If equities stagnated, yields had to drop to stimulate the economy. Now, equities may increase only when yields allow them to. The FED is showing that rates will not lower even if this ends up in severe financial crises. Money has to remain strong for those who have it. In periods of war, financial advantage is more important than growth. Surviving against the enemy is a priority. Talking about a paradigm shift! -- Commodity Inflation Commodity inflation is brewing. Now it is beyond brewing, it is getting explosive... Inflation is getting so severe, that it is bull-flagging against money supply itself! At least according to my charts... And if Bitcoin can be considered a commodity, it is showing the same dynamics as material commodities do. And in an even higher degree! To NDQ Bulls, the big-tech bubble appears to have already ended! Perhaps we have not seen just yet the dynamics Bitcoin can get. It is proving an investment that is progressively accumulating incredible amounts of idle wealth. High amounts of money are "parked" in Bitcoin, sitting idle. This chart is very simplistic. One more experienced with Bitcoin analysis can make a more thorough analysis. If one of you does, please inform me because it is very interesting for me! There is much more occuring. Housing is one important market, on which I am not experienced to analyze. As a conclusion, I advise every TradingView user to concentrate their efforts into deciphering the future. In this new era of progressively stronger currency, equities and investments will not perform like they did the past 40 years of QE. There is much work to do for us to financially survive in this environment. PS. To get something out of the way, I don't give trading advice. My charts are drawn with arrows so as to explain more easily my thought process. I post these ideas to provoke conversation and logical analysis. I can always be wrong in my thought process. If you disagree with a chart, please disprove it with a chart. Not with texts of semi-logical reasoning and by calling me crazy or conspiracy theorist. Of course any comments and corrections are welcome! It is when you want to disprove something that requires you to send counter-evidence. Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
5
SPX | The Everything BubbleSPX vs Inflation is a chart I explained in the following idea. While this chart showed incredible golden-ratio behavior, there are some periods which stand out. The smooth dance of the ratio throughout the last 100 years, has some quirks (the red ellipses). These periods are not random, they all feature a bubble behavior. It is clear as day that in 1996 the .com bubble formed, which caused SPX to return to trend in 2003. The 2004-2008 stock market growth and the Great Financial Crisis are not apparent, since they are part of The Great 2000 Recession. They are in the middle of a long-term downwards trend. So where does this leave us? If this chart has any meaning, we are in the middle of the air, with incalculable drop for the chart in the future... One target can be pinpointed using probable fib-extensions, using retracements drawn from important highs and lows. It is 12 times lower than now, or 92% drop. It depends on how you look at it... PS. I know that charts don't go back in time. The red arrow is drawn towards the left for aesthetic reasons. Who knows how far downwards is the trend now... PS2. I invented a new name for the Head and Shoulders pattern. I call it Cerberus, the three-headed beast guarding the Underworld. Look at it in action: The tail of Cerberus is a dragon's head spewing flames, which in trading would be a bull-flag. Chart taken from SPY_Master Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
6
SPX | Did you win?Ah the beauty of Fibonacci... when after a painful recession for equities, we reach the golden ratio alive and well. The satisfaction!!! Now we can go all-in equities! Perhaps you are one of the lucky ones who bought the October bottom, then congrats to you! How much was your profit really? After all, this was a peculiar year... Yields massively increasing, equities dropping. It is like a dead end, it feels like a maze... The main chart does show a significant recession... But we have passed it! Some charts suggest that we had no recession this year... Other charts suggest the complete opposite! Note that these are my charts. I was the contradictory being... Look at what the last chart means: LQD is the investment-grade ETF. On the second chart it is compared with SPX/(modified-yields) and on the third with SPX/(modified-yields*PPIACO). The correlation is as good as it can get... This is a mess... what can we infer from all of these charts? Something fundamental can help us clear the picture. We can differentiate between 4 distinct periods of the economic cycle. A. Equities increase while yields decrease (bonds increase) This is the QE model, which followed us for many years. During this period, the only winner is the one who had only stocks in the beginning. Investing everything in the stock market is your best bet. B. Equities increase while yields increase This is the scenario when the economy is at it's best. During this period, everyone wins. Both the one who has stocks and the one who is selling/lending cash (sitting on cash) win. Any kind of investment is good in this period! C. Equities decrease while yields decrease This is the nightmare of the wealthy ones, and this period that rarely comes. It happened during the 1929, the 2000 and the 2008 recessions. During this period, you win if you have nothing invested, and without any money. Borrowing money to buy stocks is the best plan. D. Equities decrease while yields increase Sound familiar? This is 2022 in a nutshell. During this period, I hate to disappoint you, the only one who wins is the one who has a lot of money. Sitting on cash and lending it is your only option. The immense amount of money that the US printed, is now sitting in the hands of few. If you traded for profit, then you are probably at (or near) net-zero. In 2022, you won if you sat in cash. We have gone full circle, from advising into sitting in cash, to advising into selling, to buying, and back to the beginning. Finance is complex... To conclude, my head is spinning... I have no idea what all of this will lead to. It is as if we are in a lose-lose scenario. Invest in bonds? But is the US going to be able to pay them out, after decades of free money? And with so much money in circulation, how many bonds are being purchased at these "extortionate" rates? How in the world will the US be able to pay out so much? Invest in equities? They look like they will face years of stagnation. The only thing that smells lately is the smell of war, the smell of "I have nothing to lose". The only thing to gain now is resources. Commodities are bull flagging against everything. More specifically, the combination between the cost of commodities and the cost of their production added together. This makes me believe that a small increase in production cost will lead to multiplicative increase in the final product value. This is a recipe for hyperinflation. And the big profit is if you own the land the resources are produced. (Ukraine for wheat, Taiwan for silicone, etc...). Everyone is willing to fight for these lands... I am adding this chart for the picture on the left. The CEO of Bank Of America is preparing for US bankruptcy. Tread lightly, for this is hallowed ground. -Father Grigori
SP:SPX
by akikostas
4
The Oil WarOil is strictly tied to dollar price (petrodollar). World investors/consumers are under tremendous pressure, with absolute oil price exploding, coupled with an explosive dollar. They have to pay the cost for both... US investors enjoy a very competitive oil price (compared to treasuries). This year an investment in USOIL was very negatively performing compared to treasuries. Do note that there is a discrepancy between consumer oil (USOIL) and investment oil (USOIL/modified-yields). Rate hikes are not for inflation, they are for economic war advantage. During a war period, and in a deglobalized world, you need substantial purchasing power to import, and selectively export goods. Tread lightly, for this is hallowed ground. -Father Grigori
NYMEX:CL2!
by akikostas
2