Tag Archives: energy

Commodities Ex-Energy Are Fine Despite Contango

Energy is back in a bear market now led by oil’s slide mainly due to rising output from Libya and Nigeria, two OPEC members exempt from cutting supply.  The S&P GSCI Energy Total Return is on pace for its worst quarter since the fourth quarter of 2015 losing -13.4% quarter-to-date (through June 19, 2017.) This is driven Read more […]

Will Oil’s Madness Upset Industrial Metals?

Although many analysts anticipated U.S. oil producers would fill the gap from production cuts by OPEC and some non-OPEC producers, not many probably guessed Brent would have its second worst Q1 in history, losing 7.6%, after the implementation of the production cuts.  According to the Information Energy Agency (IEA,) the U.S. saw a triple surge in Read more […]

Will The U.S. Oil Bath Wipe Industrial Gains Clean?

U.S. home prices hit a new record high as measured by the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index setting an all-time high in three consecutive months (with data ending in Nov.) It’s not the only indicator showing signs of growth and inflation as U.S. consumer spending accelerated in December as households bought motor vehicles Read more […]

When Will This Oil Contango End?

Today “oil jumps to a nearly 3-week high as output cuts take hold” as March West Texas Intermediate crude CLH7, +1.82%  rose $1.03, or 2%, to settle at $53.78 a barrel on the New York Mercantile Exchange—the highest settlement since Jan. 6. The S&P GSCI Crude Oil (Spot Return) is now positive in 2017 through Jan. 26, up Read more […]

An Unusual Thing Happened In August: Only Energy Rose

For the first time since March 2008, energy was the only positive sector in the S&P GSCI for the month in Aug.  Energy gained 6.2%, while agriculture, industrial metals, livestock and precious metals lost 5.7%, 3.2%, 0.4% and -4.0%, respectively.  Not only is this the first month in over 8 years for energy to rise alone, but it has only Read more […]

Rieger Report: Muni Bonds – the States Leading and Lagging 2016

The municipal bond market tracked by the S&P Municipal Bond Index has seen a 4.11% year-to-date return.  Investment grade municipal bonds tracked in the S&P National AMT-Free Municipal Bond Index have seen a 3.95% return. What states are leading the pack?  The answer includes some of the states that have been performance drags in the past.  Municipal Read more […]

Rieger Report: Energy Sector Helps Drive Market

The recent oil price rally has pushed the energy sector upward in both the equity and bond markets. In the second quarter so far, the S&P 500 Energy Index (equity) has returned over 9.1% in total return and the S&P 500 Energy Corporate Bond Index has returned over 7.3%.  Meanwhile, the broader indices have seen more modest returns: the S&P 500 Bond Index (the debt Read more […]

Who Fuelled the Oil Bonds Bubble?

It has become popular to blame passive investors and index funds for the recent rise (and fall) in prices for U.S. high yield bonds.  The thesis – placing passive investors as the culprit – goes as follows: There have been material, positive flows into passive bond funds, at the expense of active funds. Passive bond funds Read more […]

Every Commodity Benefits From A Falling Dollar

For the first time since June 2014, the Dollar Spot Index yoy% was negative in March. That was one of the main reasons commodities had such a strong month with the S&P GSCI gaining 4.9% and Dow Jones Commodity Index (DJCI) up 4.0%. Since commodities are priced in US dollars, when the dollar rises, it Read more […]

Ex-Energy, Commodities Are Up In 2016

As February comes to an end, so might be the commodity catastrophe.  Although the S&P GSCI Total Return lost another 3.2% in the month (through Feb. 26, 2015,) bringing the year-to-date performance down to -8.2%, half of the 24 commodities in the index were positive for the month. Further, at least one commodity from each sector Read more […]