{"id":61540,"date":"2022-01-18T15:41:45","date_gmt":"2022-01-18T20:41:45","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61540"},"modified":"2022-01-18T15:41:45","modified_gmt":"2022-01-18T20:41:45","slug":"oil-is-the-wrecking-ball-that-we-all-deserve","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61540","title":{"rendered":"Oil Is The Wrecking Ball That We All Deserve\u2026"},"content":{"rendered":"
\n
\n
\n
\n

Oil Is The Wrecking Ball That We All Deserve\u2026<\/a><\/h3>\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
\n
\n

I\u2019ve been pretty clear on why oil is going higher. If you want a refresher,\u00a0click here<\/a>. I\u2019ve also been clear that when oil overshoots,\u00a0it\u2019s going to create the next Lehman moment<\/a>. Oil is the wrecking ball that will crush every CUSIP, because the Fed will eventually panic. Look at bonds. They\u2019re getting smashed along with equities today.\u00a0This will blow up the Risk Parity boys<\/a>. Their model says that bonds are supposed to hedge out risk-off periods in equities. As expected, their model stops working when inflation explodes.<\/p>\n

\"\"<\/p>\n

Oil is the ring to rule them all. If you think European power prices are crazy, just consider it a dress rehearsal for what\u2019s about to happen when oil goes parabolic. Energy = Inflation and we\u2019re just getting started here because the ESG crowd is still controlling the narrative. They\u2019re restricting supply into an energy crisis.\u00a0Meanwhile, politicians are already in panic and subsidizing consumption<\/a>. Imagine a world where demand stays stable or even increases at higher prices. Failed government policies created this monster. Global politicians keep making it worse. It will take a whole lot of pain before they finally adjust course.<\/p>\n

But Kuppy, isn\u2019t oil up a lot already? According to who? Here\u2019s Brent oil divided by the Federal Reserve\u2019s balance sheet. You tell me when the bull market gets started. \u2018Cause I\u2019m still waiting for it to get going\u2026 haha<\/p>\n

\"\"<\/p>\n

I know it\u2019s counterintuitive, but if you want to hedge your long book against the coming inflation, you can do it with long-dated OTM oil calls. They\u2019re stupid cheap because the curve still hasn\u2019t figured this out…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Oil Is The Wrecking Ball That We All Deserve\u2026 I\u2019ve been pretty clear on why oil is going higher. If you want a refresher,\u00a0click here. I\u2019ve also been clear that when oil overshoots,\u00a0it\u2019s going to create the next Lehman moment. Oil is the wrecking ball that will crush every CUSIP, because the Fed will eventually […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[24146,265,588],"class_list":["post-61540","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-adventures-in-capitalism","tag-energy-crisis","tag-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61540"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61540\/revisions"}],"predecessor-version":[{"id":61541,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61540\/revisions\/61541"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}