Tag Archives: US

URGENT-Check Your Energy Portfolio Now!

The OPEC decision not to cut oil production is a watershed event that will change the energy industry for years to come. OPEC Secretary General, Abdalla El Badri stated: “We will produce 30 million barrels a day for the next 6 months and we will watch to see how the market behaves.” Energy Minister, Suhail Al Mazrovei said: “Newcomers to the market who have the highest costs and created the glut should be the ones to determine prices.”Continue Reading

How to Protect Your Portfolio

With the stock market averages making new highs every few weeks, investors are becoming increasingly edgy about what will happen next. These are unsettling times. We have a high US national debt running about $17 trillion. Added to this the US Federal Reserve has bought $4 trillion of bonds and mortgage backed securities from the big banks. They are now in the process of reducing their purchases, but they still must sell these securities back to balance their books. In addition they must continually issue new bonds to finance our debt.Continue Reading

Market Update May 15, 2014

So far 2014 has proved to be quite frustrating and confusing. We ended 2013 on and upbeat note with the Dow and S & P making new all time highs. At the time only 16% of investors were bearish on the market. In December 2013, then Chairman, Ben Bernanke, of the US Federal Reserve started to taper bond purchases by $10 billion per month.Continue Reading

Railroads Increase Revenue from the US Oil Boom

Oil was first discovered at Spindletop near Beaumont, Texas in 1901. Through the next several decades Texas became the biggest oil producer in the US. Then in 1968 oil was discovered at Prudhoe Bay in Alaska. The completion of the Alaska Pipeline in 1977 placed Alaska in the number two spot for oil production. As early as 1951, oil was found at the Bakken Oil Shelf, however extraction proved too costly. A large portion of The Bakken Field is in North Dakota. In 2000, a revolutionary process for extracting oil called “ Hydraulic Fracturing” was developed that changed the oil industry. By 2010, 458,000 barrels of oil were recovered from the Bakken Shelf, placing North Dakota number three in US oil production.Continue Reading

Investing in China – A Time for Caution

The Chinese economy is in a state of transition from an export driven boom that preceded the US stock market crash of 2008-09 to a consumer driven economy that draws upon its citizens’ thirst for material goods. Much like the heydays of the housing boom in the US, China has had its own real estate frenzy. There has been rapid expansion both in infrastructure and local housing growth. Like in the US, now the roosters have come home to roost. China is now faced with a similar situation that preceded the US housing bubble. Risky loans were made, some with no collateral. Banks have had to either try to sell them at a hefty discount or keep rolling them over on bank balance sheets, thus hiding the true amount of losses.Continue Reading