We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Oil seasonality, Oil prices, Seasonality for markets, Netflix stock, Netflix strategy, Netflix spending, Debt to finance operations, America and football, NFL dominance, TV viewership, Streaming and sports, Oil elusiveness, EIA 2025 oil demand forecast, Oil market expansion, Global EV market, Tesla versus BYD, Tesla stock, Chinese auto market, ESG and Asset Managers, S&P 500 companies ESG strategy.
Out of the woods
As an Asset Manager, we run by many charts and data points that we look at. Over the last few weeks, we have seen the same chart repeatedly. Oil seasonality.
The chart below highlights the historic price movements of crude oil throughout a calendar year.
What the chart tells us is that oil has gone through its weak portion of the calendar year and is entering its strong period.
Typically, oil experiences the formation of an up trend early in the year that strengthens throughout the second quarter before tapering off to the end of the year.
Now we know seasonality is not everything and the price trend of oil could greatly alter the historic trend, but we wanted to share the chart as we have seen it numerous times over the last few weeks.
We remain bullish on the energy sector specifically in crude and will continue to add to positions at these levels (valuations, and spot price of crude).