(AN UPDATE ON MR MARKET AND OXY)
August 18, 2023
Hello everyone,
We are now into the middle of August. It’s looking like August and September will be bearish months for the markets and yields on the 2- and 10-year Bonds will continue to make a final push to the upside. Yields on the 10-year could get up to 4.33% or even 4.80%. Then there is likely to be a medium-term retracement. S&P 500 could dip to around 4,300 before rallying into the end of the year. The gold sell-off is persisting. A final bottom may be found around 1880 or 1850, or even into the 1700’s if there is a capitulation sell-off. Then, it is the buy of the century. Look for Oil to be in the low to mid $90s by the end of the year.
There is constant talk about whether the so-called landing will be soft or hard. Whatever it is, volatility is sure to be present. So, if we have some gut-churning down days in the market, and all the numbers turn red on your screen, please don’t sell everything in your portfolio. This only benefits the brokers, who get the commission on your sales, and the institutions who buy everything you sold at great prices.
Update on Occidental Petroleum
Our OXY trade sent out at the beginning of July is doing well. I hope many of you managed to enter the trade or bought the stock or did both. Looks like we got in near the low in the stock.
In a deal worth more than $1 billion, Occidental Petroleum (OXY) will acquire Carbon Engineering. It’s just another sign how focused the oil majors are on carbon mitigation. Such partnerships will help Occidental develop carbon air capture solutions as clean energy grows increasingly important to corporate America. Occidental will also likely be a beneficiary of the Inflation Reduction Act benefits for carbon storage. (I mentioned the latter act in Monday’s Post when I was speaking about Hydrogen). Occidental and a handful of other companies such as Baker Hughes, Weyerhaeuser, and Bloom Energy (see Monday’s Post) are potential winners arising from the growing focus on carbon technology.
Some housekeeping:
I am now starting to pair or group subscribers together according to the Buddy System. So, if you answered B in the survey (and would be happy for some help) you will be likely to get a call or email from your Buddy peer over the next week or so. This will only work if people engage with the idea. It is designed to help everyone.
A social get-together is in the planning. It’s likely to be in the next few months. I will give you a fair warning. A survey will be sent out, so we can gauge interest and numbers. It will be held in the U.S.
August Zoom meeting will be held in the next couple of weeks. A Zoom link will be sent out giving you access. This is an informal meeting allowing you to interact with other subscribers, ask questions and make comments.
Wishing you all a great weekend.
Cheers,
Jacquie
