XLF off by 18% but not really

From the look of the chart XLF appears to be falling off a cliff, actually it’s not. It’s all due to the 11th sector: Real Estate, being born from the Financials Sector. XLF will be shedding its current real estate holdings in the form of a special dividend, which will be paid to XLF shareholders … [Read more…]

Oil at 1950’s Prices

Chart of the day, Oil in the mid 20’s, the same price as the 1950’s. Some speculate that oil may fall as low as $18. If and when that happens we will have reached an investible bottom in Energy investments. My top energy holdings are CVX, VLO, OXY, KMI, EPD. Only VLO has outperformed the … [Read more…]

Crude Nearing 16 yr Resistance

In 1973 OPEC had an oil embargo on the US which rose to sharply higher prices. Today the lower US Dollar coupled with rising supply from nontraditional sources such as fracking and oil sands has led to a temporary glut in the market. Supply and Demand Adjustment Period With oil on sale consumers are going … [Read more…]