Before I get started…there are SIX more ‘Panic With Friends’ live for your listening pleasure and now 58 total episodes. Click here to listen or go to Spotify/Apple Podcasts and search my name.
The lastest episode is with a great business thinker and investor Tren Griffen who has spent the last 18 years as a Director at Microsoft, and has a million investing stories. I love how he calls ‘business’ the greatest strategy game. Listen here. His essays on investing are incredible. Makes sure you take the time if you love investing and pass the links around.
Actually, one more pimp of the podcast…this one with my pal Josh Brown who I could chat markets and life with all day…so we do right here. My favorite idea is a ‘spite’ brokerage…a la Curb Your Enthusiasm.
I bought some Exxon today…not so much because I think I have an edge, but because it still is a $40 stock with a dividend while oil prices went negative. I want to follow the train wreck with some skin in the game.
The oil jokes were flying today and the Twitter oil ‘experts’ came out of the woodwork with 140 characters of detailed advice and explanations.
My fave tweets re the oil implosion today were:
This one chart from my friend JC showing Tesla/relative to oil has to be making oil bulls and Tesla bears heads explode…
I think the Stocktwits Daily Rip had a great summary of what went down (BTW it is free, arrives daily at 7-30 pm eastern and a must read):
Today will be remembered as an historic one in markets. Crude oil for May delivery traded negative. It settled today at -$37.63. That means it would cost you almost $38 to sell one barrel of oil. (You read that right)
There is so much oil that has been removed from the ground while demand has decreased so much that you have to pay to sell.
There is so much oil above ground that we have run out of room to store it.
The May contract is about to expire and if you are long at expiration, you must be prepared to take delivery of the physical oil. Contract holders who have no place to hold physical oil are trapped and must pay to sell.
This is next level crazy even for 2020.
The June contract settled at $20.43 this afternoon which means traders, at least for now, are less worried about settlement a month from now.
The May contract expires on the 2:30 PM ET close tomorrow afternoon so we could see even more pressure on the price tomorrow morning.
Funds will blow up on this, there is zero doubt, and there will be great books written about it.
I have no idea where the next implosion is coming but there will be many more from this recession.
The Federal Government money printing machine is in full turbo and so I will not bet against them winning. The side effects are the hard part to game.