On the Need For A Federal Oil Reserve

In 1913 the Federal Reserve was established to provide a politically insensitive institution that could make and enforce policy for one of the most important and sensitive elements in our economy: the dollar. Given the disastrous results of the governance of energy, it may now be time to consider a Federal Oil Reserve that would […]

Making Money From the Eagle Ford Shale

Making money from the Eagle Ford Shale Newly exploited tight oil formations account for more than 100% of the increase in U.S. field production of crude oil since 2005. But that doesn’t mean it’s easy to make money getting oil out of the ground this way. Source: EIA. The Wall Street Journal reported last week: Royal Dutch Shell (RDSA) plans […]

How Iran Plays the Oil Game…and Wins

Instability in Libya and other parts of North Africa may be giving international investors the jitters.  In August, U.S. energy explorer Apache Corp. said it had enough of the political upheaval in Egypt and  solda portion of its assets there to its Chinese counterpart, Sinopec. In neighboring Libya, Exxon and Royal Dutch Shell said they’d had […]

Mr. Market is Having Another Fit Over the Fed’s Taper

On Tuesday, Asian markets got off to an only mildly down start, so I busied myself on a post that took some concentration, along with some nagging tech matters. At end of day, it appears that Asian markets decayed during the trading day and Europe was off to a wobbly start. The Nikkei finished down […]

Will Moribund Uranium Prices Rebound?

Commodities prices are pretty much like the War on Terror—driven by fear. Since the 2011 Fukushima nuclear disaster in Japan, uranium prices have dropped sharply, and stayed there. Now, depending who you ask, uranium prices are poised for a nice rebound or they are doomed to a slow death. In order to predict the future […]

Weighing the Week Ahead: Is It Time To Book Profits?

In last week’s WTWA I predicted a snoozefest, and that was pretty accurate. I also wrote, “Because column inches and air time must be filled whether there is real news or not, I expect a week laden with speculation about tapering, who will become the new Fed chair, and whether economic data warn of a […]

How Fuel Subsidies Around the World Burden the Rich and the Poor Alike, with Lessons for the US

I have posted frequently (most recently in a three-part series that starts here) on the topic of underpricing of energy in the United States, but we are not the only offender. Many countries around the world subsidize consumer energy prices in ways that bring them to levels even lower than what U.S. consumers pay. These […]

The Elephant In The (Money Management) Room

The concept of risk management receives a lot of attention in the investment realm, and rightly so. Chasing return directly, by contrast, is almost certainly doomed to failure. In other words, risk management is the only game in town. But talking about it is one thing; applying it in a meaningful, productive way that delivers […]

Alpha as a Statistical Outlier

Alpha, which attempts to measure the risk-adjusted ability of portfolio managers against a benchmark, has become a moniker for manager and portfolio “performance.” However, we wouldn’t be wrong to consider that “performance” may be more of a misnomer than moniker.  Alpha’s link to outperformance, (when alpha is positive) debatably services what some might claim to […]