Postcards: Not All Heroes Wear Capes (The Case for Oil)

Barclays is the first major bank to break the grip of the ESG clown parade. It'll take a lot more political will - especially from banks linked to the European Union.

2:45 pm Market Update: Well, we nailed that…

If you are a member of the Republic Risk letter, you’ve been warned for the last two weeks about a likely selloff that fuels a larger capital exodus. Today, you received a note at 10:55 am with “RED” in the subject line.

Since then, the S&P 500 has been falling in a pattern of lower highs and lower lows. We’ve warned about this since AFTER the March Fed meeting and again starting in April due to worries about tax season and general momentum in the market. Gold, other materials, and energy are increasing due to geopolitical tensions and ongoing expectations for monetary inflation.

Now… how long will this last?

That’s the BIG question. Interest rates are rising thanks to ugly inflation data. But recall we said that the money markets and bank reserves would face pressures in mid-April due to a drain around tax figures. Finally, you have the geopolitical tensions building, with an attack on Israel by Iran expected. We expect the markets to reco…