Opec Wins, UK Grins, and Gundlach thinks the bond market is crazy.
This is the bond market on drugs
Oil Production Climbs
- Saudi's get their way. Other OPEC members obey
- New projects are not viable unless Oil over $60/ Barrel
- Existing Shale projects may eb viable over $50
- Rig counts dont matter as much as wells do.
UK's Cameron to hand PM to Theresa May today
- transition calms UK markets
- GBP still under Brexit levels, but bottom likely in
Gundlach Calls Yield Search a Mass Psychosis
"Call me old-fashioned, but I don’t like investments where if you’re right you don’t make any money,” Jeffrey Gundlach, chief executive officer of DoubleLine Capital said
- Germany issued negative yielding bonds for first time
- Switzerland issued more negative yielding bonds going out to 2058
- Gundlach thinks that makes US Bonds a buy relative to their counterparts
- Doubli Line is long Gold and outspoken on the topic
Industrial Commodities Rally on Stimulus
- Copper, Silver and Rebar are all higher
- Oil weaker on its own data, but still higher post Japan Stimulus announcement
Equities Slow Rally
- Nikkei Strong
- Uk and EU lose tail wind from regional open issues
- USA markets pause for breather
-Soren K.
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