Commodity markets fell once again. I’m beginning to sound like a broken record here, but there’s truly nothing attractive about being on the long side of commodity prices. Deflationary forces are taking hold more strongly now that attention is focused on China’s slowing economy and its ripple effect on commodity prices. As such, I continue to recommend short plays on the commodity-related sectors.
In markets where there is no grid, solar is the first option. Just as happened with cellphones, the frontiers leapfrog the older technology. McKibben uses the example of Bangladesh, a poor country, where people install more than 60,000 solar arrays a month.
The growth rate— and potential — in solar is hard to fathom. SolarCity, which is the largest installer of rooftop solar arrays, finishes one about every three minutes. The CEO and co-founder of Solar City said: “That sounds impressive, but it’s only 200,000 homes so far, out of 40 million [in SolarCity’s market area].” His goal is to get that rate to one every three seconds.
European utilities. Europe is a few years ahead in the solar game. In 2008, the top 20 utilities were worth about $1.3 trillion. Today, they are worth half that. In fact, they have been the worst-performing stocks in Morgan Stanley’s index of global share prices.
There you can see the effect of competition from wind and solar — and net metering, which allows consumers to sell power back to the utilities
Add up the above and you see why nearly a third of all new electricity generation today is solar. Solar’s market share is small but gaining rapidly, with a 60% growth rate since 2008. At that rate, solar capacity grows 10-fold every five years.
Long term, these stories spell the death of both coal and natural gas as a source of electricity (and oil too). It will take time, but if you bet on coal or NG, you are on the wrong side of history. Those bets are like those made on newspapers and video rental stores on the eve of the Internet age.
Algos lifting markets nicely and Central Banks happy
Nothing new here Central Banks can manipulate markets just not Commodity prices for most part.
High Sp3ed Frequency traders just follow their lead
More job losses the ripple effect.
Job lossen gain traction
Central Banks fill up on Slumping Oil
In the end true indicator Of Economy are Slumping Commodities.
although this year could be much different with a commodity slump that just won't stop
Remember start accumulating small amount of VIX protection as it is cheapest in July by historical figures.
Oil plunging again
Bye bye growth Economy
Bye bye wage And job growth
That's right recessionary job levels
let's crash that oil price some more thank you very much
Make it Big Texas with those layoffs
Saudi Arabia raking in the money.