Oil prices are now down nearly 10% from their highs as fears over higher interest rate policy spread.
With markets now seeing less than 2 rate cuts in 2024, demand outlook is questionable. This has put oil prices at their lowest level since March 28th. However, prices are still up more than 15% from their February 2024 lows. Source: The Kobeissi Letter
Smaller companies generally spend a much higher % of their income on debt service, making them more sensitive to rising rates.
The interest coverage ratio (operating income / interest expense) for the small cap S&P 600 is 2.3 times vs. 7.6 times for the large cap sp500. Source: Charlie Bilello
SP500 Put/Call Ratio has risen to multi-year highs amid the recent market sell off.
Source: David Marlin
The US being a net energy exporter in one chart
Chart: Stephane Deo, Michel A. Arouet, Eleva Capital
Commodities saw their largest monthly allocation increase in history
Source: BofA
CTAs will dump billions worth of stocks over the next week in EVERY SINGLE SCENARIO warns Goldman Sachs
Source: Barchart
Federal Reserve posted its biggest loss in history of $114 billion last year 👀
Source: Yahoo Finance
How does Buffett find great investments?
He uses his 4 filters: "Charlie and I look for companies that have a) a business we understand; b) favourable long-term economics; c) able and trustworthy management; and d) a sensible price tag." Simple, but not easy rules to follow. By "The Investing for Beginners Podcast"
