Oil, Economics And Risk

Oil, Economics And Risk

“Davidson” submits:

See 2017 Hedge Fund Letters.

If I understand the US$/$WTI/Economic Expectations/Capital Risk-Reward relationship, Trump’s action against Syria, which is really an action against Russia, Iran, N. Korea, China efforts to attact Democratic ideals, should be reflected in a weaker US$ as capital repatriates to Emerging Markets. Algorithms have connected a belief that strong US$/ weak $WTI signals slowing economic activity. It is all connected based on past patterns even though these connections have only been roughly connected prior to 2003.

The action the past few days of weak $WTI/stronger US$ is being reversed on Trump’s strong response to Syria’s actions. Will be interesting to watch next few days.

Oil, Economics And Risk

Richard Pzena On Why Value Investing Works

These relationships are not lock-step but they are certainly connected to investor beliefs where the Risk/Reward is most favorable. Trump’s success in getting general tariff reduction is supportive of a stronger US$, but global trade relationships and investment opportunities still favor a weaker US$ in my sense of the overall trend of global capital allocation.

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 4/30/2020 or after the next 40 subscribers take advantage whichever comes first – please do not share this discount with others

 

0