I happened to read the current MF Post of the Day from the Macro board (here’s a link to the post),
and I thought it was a great post, one of the best I’ve read in a while in terms of opening my eyes to a subject. I read it twice, and recommend it highly.
I tend to agree that the should be a ceiling on the price of energy. However, I also think that, in the short term and mid term, the markets can be affected by volatility created by traders and temporary shocks. Therefore, we could also see volatility in pricing of the energy commodities and many other assets. I also think that the world is on the cusp of permanent low priced energy because the cost of renewables will continue to keep prices low and drive them toward zero. If we have permanent very low cost energy, assuming all other things remaining equal, then this should be expansionary for the global economy although there will also be a lot of disruption which again can lead to volatility.
I agree Saul, very good post.
However, I also think that, in the short term and mid term, the markets can be affected by volatility created by traders and temporary shocks.
So true…MRO has been a double since Feb 2016…emotionless profit.