Tag: 2015

Who’s Fracking What?

Wonder why gas prices are low nowadays?

It seems Fracking has a lot to do with this phenomenon.

Fracking, or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep within the earth. Read more about Fracking at  http://www.what-is-fracking.com/.

 

This is how they Frack. Image from www.biggerpieforum.org

The Fracking revolution in the United States has been cited as the cause of lower crude oil prices in 2014. See the graphs from the Motley Fool website.

However, in 2015, these low prices may eventually put pressures on Fracking as firms struggle with lower profitability. It seems that Fracking is becoming a victim of its own success.

 

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Investment Trend for 2015: Strong US Dollar

In 2014, the dollar gained on the Euro, Pound and Yen. In 2015, many analysts expect the dollar to grow stronger.

Is 2015 the year of an even stronger US Dollar?

Barron’s enumerated the ways in which a strong dollar impacts the global economy.

Investment Trend for 2015…. Stock Picking

In the years following the financial crisis of 2008-2009, due mostly to quantitative easing (or QE… most people know QE as “bailout”), stock prices became highly correlated. This made it difficult for investors to gain alpha through stock picking.  Since the US Federal Reserve announced the end of the QE programme, stocks are starting to become less correlated. Analysts expect stock correlation to drop even more and stock volatility to increase in 2015. Stock pickers (the good and the lucky) may be picking up alpha as well.

 

Read the report on CNBC.

http://www.cnbc.com/id/102249335#.