Tag Archives: dollar

Inflation, Rising Rates Can Spark Oil’s Rebound

In anticipation of the Federal Reserve’s policy meeting starting Wednesday that may raise the federal funds target rate, here’s what you need to know about how the decision impacts commodities. Historically rising interest rates are positive for commodities for two main reasons.  One is the return on collateral increases, pushing up the total return. The other reason Read more […]

Gold Shines With Its Biggest 2-Day Gain Since 2011

According to my colleague, Howard Silverblatt, Senior Index Analyst, “The S&P 500 posted a $317.2 billion fall, after Friday’s $656.9, making the two-day fall $974.2 billion – the third worst on record.  The 2-day point drop of 112.79 was the second worst point drop on record, and on a percentage basis, the 5.37% decline for 2-days is Read more […]

No Alchemy Needed

In January 2015, the total return of the S&P 500 Index was -3.0%.  We published this number last Friday evening, after January trading ended, and of course it’s been widely reported since then.  It may therefore surprise you to learn that some investors in the S&P 500 reaped a total return of +4.0% in January. Read more […]

A Strong U.S. Dollar Isn’t Bad For All Commodities

A strong US dollar is generally bad news for commodities since historically as the U.S dollar strengthens, goods priced in dollars become more expensive for other currencies. The historical negative relationship between the U.S. dollar and the S&P GSCI is shown below. While the broad based indices are negatively correlated with the U.S. dollar, some commodities are more Read more […]

Money Grows on THESE Trees

My parents used to tell me that money doesn’t grow on trees, but they didn’t know about the Eucalyptus trees in Australia like the one shown below. The science journal, Nature Communications, reported Eucalyptus trees in western and southern Australia absorb gold through their roots and transport it up all the way through their leaves. Read more […]

June 2013: What’s Hot and What’s Not

Read about some commodity highlights in June from an interview with Courtney Nebons, our studio producer.  Click here to watch the video. Q1.  This month we heard a lot about the Fed easing its monetary policy, so how did that impact commodities? Commodities reacted negatively to the news that the Fed may ease its bond Read more […]

Risky Assets, Safe Havens, or Lost Identities?

All commodities in the S&P GSCI and the DJ-UBS CI crashed on June 20, 2013, losing 3.1% and 3.0%, respectively, after the Fed declared the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year.  This is generally bad news for commodities since historically Read more […]