TheStreet: Crude Prices to Jump as Shortage Leaves Europeans 'Scrambling' for Oil

By SIMON CONSTABLE

Get ready for a surge in Europe's benchmark oil price: Brent crude.

There's a shortage of crude in Europe, and the price of Brent futures contracts doesn't reflect that stark reality, according to a new report. 

"We expect the tightness in the physical market to impact the financial market, and see Brent rising to $75/[barrel] over the coming weeks," UBS wrote in a recent research note. "The physical market in Europe is scrambling to obtain sufficient barrels." Read more here.

Korn Ferry: The Three Fs of Innovation

By SIMON CONSTABLE

When entrepreneur Elon Musk started production of Tesla’s electric vehicles in 2004, it must have looked bizarre. There was effectively no market for such cars anywhere, with fewer than 2,000 on the road within the next year and virtually no public charging stations. That’s only slightly more than all the 1,549 747 jumbo jets that aircraft maker Boeing has ever built. But we know how this story has shaped up: within a decade, Musk’s prescience was proven, with around 1.9 million battery-powered electric vehicles of all brands on the road in 2017, along with 430,000 public chargers. Read more here.

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Barron's: Plastic’s Woes Have Made Bayer Spinoff Covestro a Very Cheap Stock

By SIMON CONSTABLE

Here’s something to add a spark to your portfolio.

German materials company Covestro (ticker: 1COV.Germany or COVTY), which makes high-tech plastics, is not only in a prime position to benefit from the need for high-performance materials in electric vehicles, but it’s also woefully undervalued. Read more here.

TheStreet: Central Banks Going Gaga Over Gold

By SIMON CONSTABLE

Central banks are going gaga over gold.

They are snapping up the metal at the fastest rate in almost half a century in a trend that looks set to continue. Read more here.

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WSJ: What is Divergence in Markets?

By SIMON CONSTABLE

When market analysts use the word “divergence,” it often isn’t clear what they mean. That’s a problem because how it is used and in what context has implications for investors. Read more here.

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Barron's: How to Use ETFs to Invest in Commodities

By SIMON CONSTABLE

Commodities are soaring this year, reminding investors of their potential to fortify a portfolio. The S&P GSCI commodity index, which follows a basket of commodity prices, including crude oil, industrial metals, precious metals, and foodstuffs, gained 15% in the first quarter, versus 13.1% for the S&P 500 index.

If you’re looking to increase your exposure to the asset class, consider doing so through exchange-traded funds instead of playing the futures market—or by purchasing physical bars of bullion. ETFs are simple, and they can help reduce overall risks and add to returns. Read more here.

Darden: Crowded Out? Government Spending and the Private Sector

By SIMON CONSTABLE

Does government spending pull resources away from the private sector?

It’s a question that has long vexed economists. 

One widely held theory, the crowding-out effect, asserts that yes, government spending eats up resources that otherwise would be available for businesses.

However, new research shows that crowding out doesn’t necessarily happen, as long as the economy isn’t running at full capacity, producing to its full potential. Read more here.

Photo by Elton Sa on Unsplash