Transcript:
Tom Vaughan:
Hello everybody, welcome to Tuesday. The S&P 500 was down .7%. Today was really kind of a wild ride, it opened up down in the morning, and was kind of continuing the path that it had yesterday just a little bit slower on the downside. And then they announced that they were going to discontinue buying Russian oil and gas here in the US. And the market went from down about a half percent to up almost 2% In total, just straight up after that announcement, which is fascinating, because theoretically, if we cut back on oil and gas here that we’re purchasing from Russia, we’re still going to need that oil and gas. And so we have to go out and get it someplace else, or actually, US is producing an excess, we’re shipping some of that over. And so that just means that theoretically, there’ll be less, you know, supply that we could get to, and that would create potentially higher price and the cost of oil jumped almost $130 Today, based on that news. So it was very surprising to see the stock market go up based on that news. Because again, as the price of oil comes up, the potential for higher inflation comes up the potential for the Federal Reserve having to do more, you know, aggressive rate increases, increases. And then you know, obviously, long term, if it goes up high enough, there’s some potential for recession that fits into that. So it was very surprising to see how many how many market participants were excited about this scenario.
I will say during that period of time, when I looked at the other things that were doing really well, they were the same types of things that did really well in 2020, innovative technology, Clean Energy genomics and these types of things. I call these kinds of the Robin Hood stocks. So I think there’s a group out there, especially of younger investors that were very excited about the fact that, you know, if we cut back on this Russian oil, it might, you know, help the situation in Ukraine by putting more pressure on Russia, etc. Unfortunately, it didn’t hold up. And ultimately, there was some selling that came in and the market ended up down for the day. I do think we’re probably going to, you know, test a new low here pretty shortly. I’m actually ready to go with another rebalance. If that how it happens. You know, that’s just part of the process of this kind of unwinding situation in the stock market. Things are getting cheaper, earnings are still going up and prices coming down. The stocks are getting cheaper really by the day, every time nice things come down. So very interesting day, fascinating timeframe as usual. I look forward to seeing what’s going to happen tomorrow and we’ll talk to you about it then. Thank you