From an investment perspective, there are a few ways to play this gas crisis. Australia desperately needs to develop new sources of gas to supply the domestic market. There are a number of small companies developing their reserves now to do this in the years to come.
Australia has some of the largest gas reserves in the world. But due to regulatory failure and a nasty energy bear market during 2014–16, which saw investment in the sector plummet, we’re now in ‘crisis’. How did it get to this point?
Iron ore rallied in July and August. Yet it has plummeted in the last few weeks after fears that the crack-down on pollution could affect both supply and demand of the iron ore market.
Markets make opinions, goes the old saying. Nowhere is that more true than in the oil market right now. More broadly, the rally in oil prices tells you the global economy is healthy. That should keep stocks moving higher in 2017.
Thinking about big trends and who will benefit from them is crucial to making long term investment decisions. The key question right now for investors is what about the next 10 years? To my mind, I believe a resurgence in Australia’s resources sector as well as opportunities in agriculture, education and tourism.
Oil was the big winner overnight. Brent crude jumped a massive 3.8% to around US$59 a barrel. Yet all I’ve heard over the past two months are bearish stories about the global oil glut and the unlimited production ability of US shale oil. That’s why I’ve been bullish on oil for sometime.
The share price for Sheffield Resources Ltd [ASX:SFX] has gained 10.7% today. What caused the share price hike?
Australian gold miner shares fell after the US Federal Reserve´s meeting yesterday. As predicted, the Fed kept the interest rates on hold at 1%–1.25%.
Tech stocks are hot, and no one wants to get off the train right now. While I wouldn’t want to bet against tech stocks here, I wouldn’t want to own them either. There are better value opportunities around with more upside potential. Like energy stocks.
If oil prices go above US$60 and stay there, the flow on effects of higher prices and higher wages increases the rate of inflation. If this effect is large enough the RBA will have to increase rates to keep a lid on inflation.