I realize my blog posts are getting rather... dark... lately. I wish I could talk myself into a contrarian worldview on the economy, because I love bargain-hunting during financial pukes. I just don't see the path there right now. And I am not sure how many investors are willing to get into the business of … Continue reading Electric utilities will be an even bigger mess than usual out west this summer →

Here is a chart from geopolitical strategist Peter Zeihan providing a useful overview of the global market for oil and its physical and political vulnerabilities. It's somewhat dated, but still good. Analysts at JP Morgan say they expect the average price of gas nationally to hit $6 by the end of summer. This week it … Continue reading Understanding the market for oil →

Here's a lesson in why people like Elizabeth Warren and Robert Reich are cranks on inflation and the profitability of corporations. So Walmart's stock is tanking today. Last I checked, it was down 9%. If these greedy corporations have been so proficient at gouging their customers, why aren't investors scrambling to own shares? What an … Continue reading Walmart’s earnings – a lesson on the difference between profits and profit margins →

I have seen a lot of people online puzzling about retail sales. Despite inflation being at a 40-year high, consumer spending does seem to be holding up. How can that be? Also, with so many economists and business leaders suggesting that we are headed into a recession, why aren't people cutting back on spending? One … Continue reading It’s all going on credit cards →

As with the mind-blowingly reckless withdrawal from Afghanistan, I am struggling to understand what the Biden administration's endgame with the Strategic Petroleum Reserve (SPR) is. The SPR is the United States Department of Energy's emergency stockpile of oil, which is stored in underground tanks in Louisiana and Texas. The SPR dates back to 1975, when … Continue reading Biden announces plan to decimate the Strategic Petroleum Reserve →