Energy & Commodities

Natural Gas Hits Lowest February Price In Two Decades

Warmer winter weather this year has reduced U.S. natural gas demand for heating, and as production growth continues to exceed demand growth, U.S. natural gas prices slumped this month to their lowest February levels in two decades, the Energy Information Administration (EIA) said on Friday.

Natural gas prices at the Henry Hub benchmark closed at $1.77 per million British thermal units (MMBtu) on Monday, February 10. This was the lowest closing price for a day in February since at least 2001, according to Bloomberg and FRED data compiled by the EIA. The $1.77 per MMBtu price was also the lowest price in any month in nearly four years—since early March 2016.

Natural gas prices dipped to below US$2 per MMBtu this January for the first time in almost four years. This winter season, the glut is further aggravated by higher gas production in the Permian, higher than normal inventories, and warmer weather so far this winter.

As natural gas production outpaces demand growth, less gas has been withdrawn from underground storage this winter, the EIA said….CLICK for complete article

OK, it Gets Sticky: Job Openings Plunge the Most Since the Great Recession

Let’s make this clear: these are job openings in December and prior months, before the novel coronavirus had shown up on the business-staffing horizon. Let’s also make clear that the two-month drop was so bad that a statistical flaw might have skewed the data, such as some seasonal adjustments gone berserk. But as we will see, the not-seasonally adjusted data looks even worse. And it’s not just one month. With hindsight we see that the trend started in early 2019 in small uneven drips, and it didn’t really matter until it suddenly did.

The number of job openings in December dropped by 364,000 from November (seasonally adjusted), after having already plunged by 574,000 in November, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). This two-month plunge of 938,000 job openings came after a series of ups and downs with downward trend starting after the peak in January 2019. It brought the number of job openings in December to 6.42 million (seasonally adjusted), same level as in October 2017. Since the peak in January 2019, over 1.2 million job openings have dissolved into ambient air (November and December in red)….CLICK for complete article

Can You Hear It Now? Everything To Know About The Sprint, T-Mobile Merger

A judge has approved the long-sought merger of T-Mobile US Inc. and Sprint Corporation Here’s what to know about the deal marrying the third- and fourth-largest cell carriers in the United States.

The Deal

T-Mobile, the larger carrier, paid Sprint shareholders $26.5 billion in an all-stock deal for the smaller company. The deal was approved by federal officials last year, but a group of state attorneys general sued to block it on antitrust grounds. On Tuesday, a judge ruled the merger can proceed….CLICK for complete article

Visualizing the 700-Year Decline of Interest Rates

How far can interest rates fall?

Currently, many sovereign rates sit in negative territory, and there is an unprecedented $10 trillion in negative-yielding debt. This new interest rate climate has many observers wondering where the bottom truly lies.

Today’s graphic from Paul Schmelzing, visiting scholar at the Bank of England (BOE), shows how global real interest rates have experienced an average annual decline of…Click for full article.

Tickets are SOLD OUT but you don’t have to MISS OUT

When I emailed Martin Armstrong, the man the Wall Street Journal called the highest paid financial advisor in the world – the man who is on the speed dial of central banks and sovereign wealth funds around the world – to join us at the World Outlook Financial Conference this weekend he wrote back saying, we are headed into such a crazy period that there is just no precedent in modern times.

This month he wrote, We face a global contagion never witnessed before in economic history.” That follows from his statement in July, I have never witnessed such complete disruption to the world economy on a massive scale of this nature. This is going to be a challenge to survive.”

So is that what Martin Armstrong has been warning about?  

I’ll ask him at the Conference on both Friday and Saturday, but I suspect it’s a lot more than a serious liquidity problem. There are $12 trillion in negative yield bonds, which is crushing European pension fund returns and their ability to make payments to future retirees. That’s what the French pension protests are about.

The bottom line is that I have literally never been more interested in hearing what Marty has to say. Every major trend we’ve been predicting on MoneyTalks and at the World Outlook Financial Conference is in full force – headlined by a decreasing level of confidence in government. And you can still purchase access to the streaming video archive which you can watch on any device from anywhere in the world on your schedule. Video you’ll be able to access within 48 hours of the event. (It’s the next best thing to being there)

The world is changing in dramatic fashion. Volatility is going to intensify. The World Outlook Financial Conference track record speaks for itself. Our official World Outlook Small Cap portfolio has delivered double digit returns every year. We can help you navigate those changes and the volatility.

To Sum Up……

Maybe we’ve been lucky that every year our specific recommendations have paid for the price of a video archive subscription several times over. Although past performance is not a guarantee of future results, featuring analysts with exceptional track records like Martin Armstrong, Ryan Irvine, Greg Weldon and Mark Leibovit (who in September, Timers Digest named gold market and stock market Timer of the Year) – puts the odds in our favour.

Specific stock recommendations at the conference like Microsoft are up 35%, Xpel Inc is up 95%, Viemed is up over 85%, Go Easy is up 37%, Parkland Fuel is up 22%.  Our small cap portfolio put together with Ryan Irvine and Keystone Financial is once again up double digits. Virtually all recommendations are up with the notable exception of oil and gas stocks, but those recommendations were for people willing to hold 3 to 5 years. It wasn’t a trading recommendation so the jury is still out. At this year’s conference we will ask Josef Schachter for an update.

Making money and protecting you from losses is the goal of the World Outlook Financial Conference, and I’m very pleased with the results. For anyone who acted on the specific advice, the $158 video subscription was probably the best investment they made last year. And you can still purchase access to the streaming video which you can watch on any device from anywhere in the world on your schedule. Video you’ll be able to access within 48 hours of the event. (It’s the next best thing to being there)

What’s coming starting in January through 2022 will have a dramatic impact on your financial well being. You can’t afford to get this wrong.

Mike

Bear Run Sends Oil Down For 10th Straight Session

A bear stampede has taken hold of oil markets as the coronavirus plague continues to spread FUD (fear, uncertainty and doubt) amongst the investing universe. Oil futures slid for a 10th straight session Monday as casualties hit 426 and the number of infections surpassed 20,000.

And now big money managers have joined the stampede as new data reveals the virus is creating severe demand shocks that could further depress prices. Reuters has reported that fund managers and hedge funds were heavy sellers of crude oil and various refined products last week as the worsening outbreak heightened fears of a demand meltdown in China, the world’s leading importer of crude.