Market Risk

[dan_s]

Despite rising oil and gas prices, most of our favorite stocks are down today because investors are spoked. This is called "Market Risk".

It's a bloody day for risk assets, with tech names plunging, yields surging, and even that "industrial bellwether", the Dow Jones, set for a big drop with two of its four biggest constituents - Goldman (#2 at 7% weight) and Microsoft (#4 at 5.7% weight) - sinking on poor earnings and a whopper of an acquisition, respectively. But not everything is tumbling: oil just hit the highest price since 2014.

Oil Soars To 7 Year High As Goldman Sees Brent Hitting $105 In 2023
BY TYLER DURDEN
TUESDAY, JAN 18, 2022 - 10:09 AM
https://www.zerohedge.com/markets/oil-s ... g-105-2023

Goldman published a report late on Monday in which the bank's commodity strategist, Damien Sourvalin, hiked his brent price target to $96 in 2022 and $105 in 2023, because according to the bank, those are the prices "required to reach necessary spare capacity and stock builds."

MY TAKE: Inflation is here to stay and we are in a Commodity Super Cycle. OECD petroleum inventories are TOO LOW and $100 oil is just a few months away. Team Biden is clueless and will continue to double down on dumb ideas related to Climate Change.