0 Aug 16 @ 10:27am by Matt Smith in Capital Markets, Crude Oil, Economy, Global Energy

Graphics Across the Gamut

Alrightee – it appears time for a random post as there has been far too much focused thinking round here of late. So I present henceforth some graphics I have enjoyed this week which run the gamut – from equities to econ…and of course, back to energy. Enjoy!

This first graphic is of youth unemployment rates in Europe, which serve to highlight that all is not well in the Eurozone just yet, despite news this week of it exiting recessionary terrain for the first time since late 2011.

Spain not only boasts the highest total unemployment rate of the below constituents (25.5%), but also has the highest youth unemployment rate (54.5%). That said, this graphic doesn’t include Greece, who would otherwise wrestle away this crown, as its total unemployment rate is at 27.6% (a record high), while youth unemployment is at an eye-popping 65%. No wonder the US is viewed in a comparatively more positive light (with youth unemployment at a mere 16%).

Next up is a cheeky chart showing the price evolution of Apple versus Gold. It is pretty crazy to consider that the correlation has been so strong over the last 10 years given they are two seemingly unconnected assets. But both have rallied emphatically in the last five years;  gold has been in favor as a store of wealth at a time of low interest rates, while Apple’s ascendance to prominence in our daily lives has been remarkable (as has the upward move in its stock price).

At the same turn, the recent sell-off in both has been strong; the rebuttal of gold has been due to improving prospects for interest rates in the US, while the bite out of Apple has been due to an edging toward market saturation, and a lack of ‘the next big thing’ in the product pipeline. That said, the recent spike in Apple’s price is attributable to prominent investor Carl Icahn taking a large stake in the company this week (which prompted a witty reference to iCahn).

 

Our third illustrious illustration comes from the Wall Street Journal this week, with Mexico announcing it is looking to overhaul its oil sector in the face of waning production and higher imports.

While it isn’t privatizing its oil industry, it is proposing constitutional changes which would carve the way for profit-sharing partnerships between its state-run oil company Pemex and IOCs (international oil companies) – surely a step in the right direction. An excellent Q&A of developments can be found here 

And finally – for fun – is this graphic which the mighty Barry Ritholtz posted yesterday on The Big Picture via the EIA. As his sentiment implies, its a simple but a goodie…what is in crude oil:

That’s all folks! Thanks for playing!

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