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NetWorth Radio


The unique NetWorth Radio broadcast delves deep into the most important headlines and the actual meaning for investors. Interviews with nationally acclaimed authors and Dallas business leaders bring to life investment strategy in a unique and exciting format. The author of two books and 31 investment articles, Spencer is a Certified Investment Management Analyst who manages portfolios for successful families.

Oct 17, 2014

Click here for this week's charts.

 

The US equity markets dipped into negative territory for 2014 this week. From the peak of September 19th to the trough this week, the S&P 500 benchmark index fell over 9%. 


The success of the shale revolution is a key factor in this week’s large declines in oil prices as well as wholesale gasoline.

Royalty trusts were hit this week as oil process declined near 18 month lows. The prior warning on exploration and production master limited partnerships was based upon excessive debt. The royalty trusts with generally less debt and less in capital expenditure commitments could be, at some point, a bargain replacement for oil based master limited partnerships. The question is how low can oil and share prices go? 


COMMODITY DEFLATION COULD BE ONE OF THE MOST IMPORTANT FACTORS DEFINING THE END OF 2014

The premise that inflation must rise and the dollar must fall has been rendered at least temporarily false. The impact of deflation appears to correspond to lower interest rates. The pain experienced by many investors seeking a “commodity” strategy is one of the most important lessons of the decade. 


BOND SECTION:

30 year US Treasury Rates Make a 52 Week Low: TO ROLL OR NOT TO ROLL? The implication for investors is duration control. For Lump Sum Pension holders, the lower “GATT” rate generally corresponds to larger lump sum options.


Lesson: Yield Versus Price


Bond Education: RISING DURATION RISK—GET THE ARTICLE

16 countries now have lower yields than the United States. Has inflation been negated by global free flow of capital and goods?   


Profit Report: PENSION ROLLOVER DISCUSSION

  • Plus Commodity Bear Market?
  • The impact of oil’s technical breakdown?
  • How low can the royalty trusts go?

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