Why Wall Street is rotating money into the Energy Sector

[dan_s]

Nvidia now has a market cap higher than the entire energy sector, despite its profits making up a fraction of those produced by the large energy businesses. Nvidia revenue growth also runs in big cycles up and down. In fact, on March 8th, Nvidia fell 10% in just 30 minutes.

With WTI over $80/bbl and pushing higher thanks to the spike in demand for transportation fuels THAT HAPPENS EVERY YEAR, all of the upstream companies in our three portfolios that get the majority of their revenues from oil sales are VERY PROFITABLE.
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Outside of the Energy Sector the economy is not so good.

Workin' for the Weekend

To get a true sense of our nation's employment situation, we have to look underneath the surface of the jobs reports.

First of all, regardless of how many jobs are truly added, you can't forget about cuts eating into those numbers. In February, layoff announcements reached their highest monthly levels since the global financial crisis.

Now, let's look at our most recent jobs report. While the headlines show our economy added 275,000 jobs this past month, the number of folks actually employed fell by 184,000.

Roughly 161M workers were employed in the U.S. in February, the lowest number since May of last year. How did the number of employed people fall if the economy added so many jobs?
Answer: they're holding more than one job. Reports show a whopping 278,000 Americans picked up more than one gig last month.

Also, as new numbers come out, old ones get revised. The impressive 353,000 jobs number reported in January was revised down significantly to 229,000. That's 35% lower than the initial report.

Pay no attention to the man behind the curtain.

Banks: Too Small to Bail?
Regional bank stocks are crashing like waves in a hurricane.

Even J Powell is getting increasingly more honest. He finally confirmed that there will be bank failures, but it won't be the big guys.
Powell said the banks that are in hot water are not the "big banks." Of course not.

After the 2008 crisis, they got the "systemically important" stamp, AKA "too big to fail." Remember, those failures were also due to sketchy real estate assets. We all watched our taxpayer dollars pull those guys out of a black hole.

According to Powell, the failure risk is contained to smaller and medium-sized banks, a problem he says we'll be working on "for years or more." He also said that these issues will be "manageable."

How we'll manage, we'll just have to wait and see.

Any tin foil hats in the house? If the Fed and big banks were to, oh I don't know, whip up a little economic crisis, why would they do so? Probably because they always win.