As July approaches, let’s read the market tea leaves for 2H2022 and beyond. Over the past few weeks, markets have priced a broader growth scare as commodity equities sold off sharply and Treasuries priced a lower and earlier peak in Fed Funds rate. However, bonds markets were blind to the inflation surge, so why should […]
Commodities
US Housing Market Should Cool
US housing market should cool, due to spiking mortgage rates, but a 2008 type collapse is unlikely. The mortgage market has remained resolutely fixed rate during the current bull market, which underpins our sanguine outlook. Yes, there are signs of excess, but there’s no risk of monthly payment ballooning considering that variable rate funding is […]
Energy Policy and Future Supply Crunch
This week’s focus is energy policy and how it contributes to energy supply crunch. Simply put, we are attempting the clean energy transition by vilifying traditional sources of energy. This is leading to underinvestment that is likely to cause sustained higher prices to consumers. Despite The Dispatch wanting a cleaner, lower carbon future, it has […]