Daily Digest

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Daily Digest 1/1 - Resolve To Do Better In 2015, What If The World Can’t Cut Its Carbon Emissions?

Thursday, January 1, 2015, 12:58 PM

Economy

This Year Will Be The Year (jdargis)

Last year around New Year’s, I wrote about viewing exercise as a drug that physicians should prescribe to patients. On Tax Day, I advocated for financial incentives to encourage movement. Today I offer my five keys to making your resolutions successful in 2015.

Resolve to Do Better in 2015: Expert Edition (Kevin J.)

David Morgan: My resolution is to strive for balance in my life and in my investments. I recommend that people be only 10–20% in the resource sector. That way they can have exposure to lots of investing options. One way to ensure balance is to put in place trailing stops that force you to take profits. Investors have to reach inside to determine what levels of risk they can afford and weigh that against the volatility of the specific stock. It is a bit of an art, but it is the best way to be successful.”

Arrests plummet 66% with NYPD in virtual work stoppage (thc0655)

The unprecedented meeting is being held at the new Police Academy in Queens at 2 p.m., sources said.

Angry union leaders have ordered drastic measures for their members since the Dec. 20 assassination of two NYPD cops in a patrol car, including that two units respond to every call.

The Fed Will Force U.S. Stocks to Fall Next Year (Tyler K.)

As Jeff Opdyke explained in yesterday’s Sovereign Investor Daily, the Fed is on the cusp of ever-so-gradually raising rates off of historic lows. The timing is anyone’s guess, but for the most part 2015 seems to be the year it will happen.

The timing is not that relevant to the inflection point, as long as it happens in 2015. The problem is that even though the rate rise will be gradual and timid, it will nevertheless be an interest-rate increase — which has many implications for the stock market.

As Feared, It’s a Season of High Flu Intensity (jdargis)

Nationwide, we’re on track for a nasty flu season, with both a large number of cases and many severe ones that require hospitalizations, according to the Centers for Disease Control and Prevention. It declared an influenza epidemic this week, a status achieved at some point nearly every year, though not usually this early in the season. Twenty-two states and Puerto Rico are reporting high flu intensity. In some parts of the country, flu infections have outpaced those from each of the last few years, according to data from the C.D.C.

What If The World Can’t Cut Its Carbon Emissions? (Evan K.)

Many people, including more than a few prominent politicians, accept that global warming must be limited to no more than two degrees C above the pre-industrial mean, or a little more than one degree C above where we are now, to avoid dangerous interference with the Earth’s climate. Let’s assume these people are right, that the 2C threshold really does represent the climatic equivalent of a cliff and that bad things will happen if we drive off it. So how do we apply the brakes?

To have a better than two-thirds chance of limiting warming to less than 2°C from pre-industrial levels the total cumulative carbon dioxide emission from all human sources since the start of the industrial era would need to be limited to about 1,000 gigatonnes of carbon. About half of this amount had already been emitted by 2011.

It's Final: Corn Ethanol Is Of No Use (Wendy SD)

OK, can we please stop pretending biofuel made from corn is helping the planet and the environment? The United Nations Intergovernmental Panel on Climate Change released two of its Working Group reports at the end of last month (WGI and WGIII), and their short discussion of biofuels has ignited a fierce debate as to whether they’re of any environmental benefit at all.

Energy Crisis As Early As 2016 (Evan K.)

Low oil prices today may be setting the world up for an oil shortage as early as 2016. Today we have just 2% more crude oil supply than demand and the price of gasoline is under $2.00/gallon in Texas. If oil supply falls too far, we could see gasoline prices doubling within 18 months. For a commodity as critical to our standard of living as oil is, it only takes a small shortage to drive up the price. On Thanksgiving Day, 2014 Saudi Arabia decided to maintain their crude oil output of approximately 9.5 million barrels per day. They’ve taken this action despite the fact that they know the world’s oil markets are currently over-supplied by an estimated 1.5 million barrels per day and the severe financial pain it is causing many of the other OPEC nations. By now you are all aware this has caused a sharp drop in global crude oil prices and has a dark cloud hanging over the energy sector. I believe this will be a short-lived dip in the long history of crude oil price cycles. Oil prices have always bounced back and this is not going to be an exception.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/31/14

Provided daily by the Peak Prosperity Gold & Silver Group

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