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🦧 GaaW: gas as a weapon

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🦧 GaaW: gas as a weapon

Ape of Omaha
Sep 7, 2022
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🦧 GaaW: gas as a weapon

www.wiseape.fyi

⛽ can’t seem to find a rebound

 

it was less than a couple months ago when i freaked out at the fact that the euro had reached parity with the dollar

  • well, now, we’re even further down, with one euro buying only $0.9881 as of writing, down 13% ytd

  • among many reasons, i’d like to focus on energy today

 

the current environment:

  • the euro is at a 20-year-low with the dollar and with pretty much most noteworthy currencies

  • the keyword is energy crisis

    • as a protest to europe's economic sanctions againt russia, russia's responding back with its own protest

    • an "indefinite halt to gas supplies" via europe's main energy pipeline

    • yeah, the summer’s over, but that’s even worse

      • how long the halt will last is uncertain at best

      • russia could have the power to drag it for as long as winter season comes as an economic threat of sort

 

all about relativity

  • surely, europe isn’t the only place being negatively affected by the current russia-ukraine crisis, but when it comes to currency pairing, it’s all about “which is doing is less worse” (at least in today’s market)

  • the european central bank (ecb) has only raised rates once (and maybe another one soon) while the fed has raised four times this year already

    • this makes the dollar a relatively more attractive asset to park money in as opposed to the euro

  • we’ll have to keep seeing, but for now, the us isn’t nearly as hit as europe is by the energy crisis

    • us does not rely heavily on the russia-europe pipeline

    • us has its own natural resource reserves, which the biden administration (imo) won’t easily tap into, but it is there, and that affects how the market thinks

 

happy wednesday!

💡 something im thinking about

do y’all see this being useful? (click image)

that's all, folks 🐒

 
as always, i’m no financial advisor! (i’m no substitute for professional financial services)
 

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🦧 GaaW: gas as a weapon

www.wiseape.fyi
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