Author: Money Mechanics

(Oil & Gas 360) by Michael Smolinski – While The Taking Out Of Those Who Kill, Maim And Destroy Is Fueling Recession Fear, So Much Needing To Be Done Fuels Our Bullish Outlook.   The near-month, closing futures contract price for WTI crude oil jumping to above $90 per barrel is increasing economic growth/ recession fear.  The near-month closing futures price of West Texas Intermediate (WTI) crude oil trending down from above $85 per barrel in April of 2024 to near $55 in December was fueling economic growth as it reduced inflation.  However, Operation Epic Fury closing the Strait of Hormuz has…

Key Takeaways The Intraday Momentum Index (IMI) is a technical indicator combining candlestick analysis with the Relative Strength Index (RSI). IMI helps traders identify overbought or oversold conditions, signaling potential buy or sell opportunities. IMI is calculated by dividing the price gain during up-days by the total price movement over a set time period. The indicator is often used alongside other technical tools due to its limitations in volatile markets. IMI can provide a clearer picture when used in combination with a trading strategy, enhancing decision-making. What Is the Intraday Momentum Index (IMI) in Trading? The Intraday Momentum Index (IMI)…

Key Takeaways Long-term growth (LTG) is an investment approach aimed at increasing a portfolio’s value over a period of ten years or more.LTG strategies often involve more aggressive portfolios with an 80% allocation to stocks and 20% to bonds.Investors may pursue LTG to achieve above-market returns, aligning with their individual time horizons and investment styles. Defining Long-Term Growth (LTG) Long-term growth (LTG) is an investment strategy focused on increasing a portfolio’s value over many years. LTG means investing to earn returns that beat the market over long periods, usually 10 years or more. Portfolios usually take a more aggressive approach…

Key Takeaways An auction rate security (ARS) is a variable-rate debt sold via a Dutch auction, often with a 20 to 30-year maturity or as preferred stock shares.It offers a uniform yield for all bidders, resetting interest rates every 7 to 35 days through periodic auctions.Auctions determine the lowest yield needed to sell the ARS, ensuring market efficiency and uniformity among investors. What Are Auction Rate Securities (ARS)? An auction rate security (ARS) is a long-term investment whose interest rate is set through regular auctions. These securities are issued as bonds or preferred stock, and their rates change based on…

Key Takeaways Intangible assets must be purchased to show on a balance sheet.They appear as long-term assets.Valuation depends on purchase price and amortization. Get personalized, AI-powered answers built on 27+ years of trusted expertise. How Are Intangible Assets Reflected on a Balance Sheet? Intangible assets only appear on a company’s balance sheet if they are acquired through a purchase and therefore have an identifiable value and an identifiable lifespan. On the balance sheet, intangible assets appear as long-term assets and are valued according to their price and amortization schedules. Intangible assets add to a company’s possible future worth, and they…

Key Takeaways Energy Return on Investment (EROI) measures the net energy produced relative to the energy expended.EROI significantly influences the pricing of energy commodities and electricity.A declining EROI indicates increasing scarcity and extraction difficulty of energy resources.High EROI values imply cheaper and more efficient energy production. Defining Energy Return on Investment (EROI) Energy Return on Investment (EROI) measures how much usable energy is produced compared with the energy needed to obtain it. It shows how efficient an energy source is. If an energy project produces more energy than it uses to extract, process, and deliver that energy, it has a…

Key Takeaways A hub and spoke structure pools assets from several investment vehicles into one central vehicle for efficiency.This method helps reduce costs and streamline management in investment firms.Each investment vehicle remains independently managed while pooling assets collectively.The central vehicle, often called a master, allocates funds efficiently to improve performance.Hub and spoke structures are commonly seen in mutual funds, hedge funds, and other pooled investments. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Defining the Hub and Spoke Structure A hub and spoke structure is used by investment companies where several funds connect to a central fund…

US primary property and casualty insurer The Hartford clearly sees the catastrophe bond market as a valuable source of efficient protection, that over the last few years has helped the company meaningfully raise the top of its occurrence catastrophe reinsurance tower.Two year’s ago, after the January 2024 reinsurance renewals, The Hartford’s executives explained that sponsorship of the $200 million Foundation Re IV Ltd. (Series 2023-1) catastrophe bond in December 2023 helped to raise the top of its reinsurance tower. For 2024, the Foundation Re IV 2023-1 catastrophe bond provided the company 66.67% coverage across a $300 million layer that attached…

Prediction market Kalshi is making it easier for its users to have conversations on Meta’s social network Threads. Kalshi now offers a share option that will automatically embed the relevant prediction market chart into a Threads post. Whether people want to discuss who’s going to win Best Picture or which reality TV contestant is going to go home (and possibly bet on the outcome on Kalshi), “with this integration, people can share their opinions alongside the forecasts they’re seeing on Kalshi,” the company said in a blog post. It’s a move that echoes a successful social media strategy for both…

Key Takeaways Federal agencies are government organizations established for specific purposes, such as managing resources and national security.These agencies are often created through legislative action or presidential order.Agency directors are typically appointed by the president. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Defining Federal Agencies Federal agencies are specialized government bodies that carry out specific duties, such as managing resources, regulating industries, or protecting national security. Most agencies are established through laws passed by the U.S. Congress, though some may be created by orders from the U.S. president. Agency heads are appointed by the president and…