I know Groundhog's day is behind us, but I still find myself repeating the same old investment paradigm pattern over and over again.
The paradigm? Earnings drive the markets. And they still do.
Lately, however, even in the face of newsworthy earnings, energy can take the checkered flag of any day's market open, middle and close. The reasons for energy's likely continued volatility in March abound, from nuclear developments in Iran, to Nigerian warlords plundering their way to finite power, to Iraq turning its potential for plowshares back into civil war swords. Then there's the constant hum and hunger of the U.S., European, and Chinese economic vehicles.
The upshot: Energy is and will remain the sparkplug in March's financial engines and fear is in the driver's seat.
Know, too, that if you're not careful you'll be like a DOE (that's U.S. Department of Energy), caught in the headlights of an EIA (Energy Information Agency) inventory report or the tail light of OPEC's falling production.
The good news: there are many ways to tap into energy's wild ride.
No comments:
Post a Comment