21 June 2017: Forget oil

Stocks of oil companies and oil-related companies are once again attracting the attention of investors. Oil fell over two percent on Tuesday and officially entered bear market territory. Some analysts predict a further drop of oil prices. Oil stocks brought down the markets yesterday. This has been the natural reaction for many decades, but aren’t the times a changing? In the last couples of weeks, both South Korea and Switzerland announced that they will invest heavily in renewable energy. In Germany, renewable sources account for more than a third of the net electricity production. On 15 May 2016, a sunny and windy Sunday, renewables supplied nearly all of Germany’s domestic electricity demand. It is true: oil dependency is still huge in the US (and that will not change under the current presidency), but around the world, the need for oil is rapidly declining. Of course, that puts oil prices and oil companies under pressure. That should not be seen as a weakness of the economy, but as a sign that innovation in the energy sector is taking off.

white-chapel-logo-smallUS stocks finished lower Tuesday as investors dumped energy shares after crude-oil prices sank into bear-market territory. The S&P 500 closed 0.67% lower, the Dow lost 0.29% and the NASDAQ slid 0.82%. Volatility was on the rise: the VIX closed almost 5% higher. UVXY ETFs profited and gained 5.70%. XIV ETNs closed 2.57% lower.
All of our models are holding XIV: as a result they had to take a step back. Danny Daredevil‘s RSS lowered to 335%. Adventurous Anny saw her RSS close at 37%. The RSS of Solid Suzy and Lazy Larry fell to 24%. The average annual returns of our models are between 100% and 200%.
None of our models gave a trading signal at the end of yesterday’s session.

Model Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil XIV 1 January 2016

335.11%

7.94%

-7.18%

172%

Adventurous Anny XIV 6 March 2017

37.44%

37.44%

12.86%

196%

Solid Suzy XIV 6 March 2017

24.04%

24.04%

13.25%

109%

Lazy Larry
XIV 6 March 2017

24.04%

24.04%

13.25%

109%

RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return

 

 

Flashback: 15 years ago

David Byrne (Scotland, May 14, 1952) is the founding member, principal songwriter and lead singer of the Talking Heads, an American New Wave band that was popular in the late 1970s through the 1980s. Last night, it was exactly 15 years ago that Byrne performed at the 013 Poppodium Tilburg. Both Tim and René (at that time, not yet known as These Dutch Guys) attended the concert. If Byrne would tour the Netherlands once more, they would definitely consider to go again. Though a Talking Heads reunion would be even more interesting…