Why I Love To Blog -- Reason #487 -- November 30, 2017

Before I started blogging (back before 2007) I knew very little about the Bakken and nothing about natural gas and even less (if that's possible) about bond yields. Now I know a lot more about the Bakken, a bit more about natural gas, and even a bit more about bond yields.

From Bloomberg:

I now understand this graph.

"A" in the graph below: similar patter to "C".

"B" in the graph below: close but no cigar.

It look like it would be a rational move to build a cash position if we see "B" next year. Jay Powell says he would prefer not to "rock the boat." 

On another note, there has been a lot of chatter about rising interest rates -- let's see the historical data for the "Fed fund rate":

 

Not particularly concerning. 

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The Political Page

One of the biggest days -- maybe the biggest day -- on Wall Street, considering the entire year and what today's market news reflects -- and on the home page of The Los Angeles Times, it's not even mentioned. 

The good news: looking at the home page of The Los Angeles Times, it appears Trump has hit the State Department with a classic one-two punch. First, Rex Tillerson has cleaned house, and now, if reports are true, his successor, Mike Pompeo would be even more effective in carrying out Trump's negotiations with our friends and adversaries.

No links. Not worth the time.