First, the decline in oil and
other commodity prices since mid-2014 has dramatically altered the paths of business investment in Canada and the United States.
Not exact matches
Since that report came out, we can count another upside to the «China syndrome»: Canada weathered the recession better than just about every
other developed economy, thanks in part to a quick recovery in emerging economies and thus in
commodity prices.
We know that Canada - along with
other commodity - exporting countries - has benefited from the rise in
commodity prices since 2002.
However, lower
prices for oil and
other commodities since the summer have further lowered Canada's terms of trade and are dampening business investment and exports in the resource sector.
Norwegian property
prices have tripled
since the mid-1990s, up nearly 30 %
since the Great Recession as the oil - rich nation rode the coattails of the
commodities bubble and has benefited from the same «flight to safety» capital flows that have benefited (and inflated bubbles in)
other Nordic countries.
Since you can control large amounts of a
commodity with a relatively small amount of money on margin, you can leverage your portfolio to take advantage of
price swings in the
commodity without having to actually take delivery of thousands of gallons of gasoline — something that is impractical for everyone
other than institutions (such as refiners, airlines, transportation fleets, gasoline retailers, etc.).
Norwegian property
prices have tripled
since the mid-1990s, up nearly 30 %
since the Great Recession as the oil - rich nation rode the coattails of the
commodities bubble and has benefitted from the same «flight to safety» capital flows that have benefitted (and inflated bubbles in)
other Nordic countries.
Furthermore one can go and make a broad generalization such as
since real estate no longer requires the same quantity of construction material
other industries sensitive to the
price of those
commodities should technically have a lower cost of doing business.
Oil shock: Analysts say the loonie has lost value against the American dollar and a number of
other currencies because of the big fall in oil
prices,
since the
commodity is of major importance to the Canadian economy.
And what I meant by the comment about interest rates,
commodity prices and the earnings of the S&P 500 is that backtesting models are inherently flawed,
since embedded into previous earnings are the data that drive them, like
commodity prices, the slope of the Treasury yield curve (and related borrowing costs) and
other unanticipated events.
Since fees are based primarily on the volume of energy products through pipelines or in storage, the partnership's cash flow is not as exposed to
commodity prices as with
other energy companies.
Prices for
other commodities that might be affected by trade deals and disputes have also stopped their sharp rise
since the beginning of the year.