As of this writing, the blockade of the Strait of Hormuz continues with little sign of reopening. President Trump’s May 13–15 visit to Beijing with President Xi Jinping seemingly produced few tangible results. Despite both sides calling for a rapid reopening, there was no sign of a breakthrough between the two superpowers on how to achieve that. Both leaders agreed that the Strait of Hormuz must remain open to support the free flow of energy. President Xi also reiterated Chin

Stocks soared and oil prices plunged on the heels of Iran claiming that the Strait of Hormuz is “completely open” on April 17th. However, the situation remains fluid and could reverse quickly. Iran’s declaration is linked to the continuation of the Israel-Lebanon ceasefire and contingent on removal of the U.S. naval blockade, which President Trump has said will remain “in full force” until a formal peace agreement is reached. THE MONEY ILLUSION AND OIL PRICES In this comme

“History may not repeat itself, but it rhymes” – Mark Twain Today’s energy shock echoes Russia’s invasion of Ukraine in 2022 when energy equities were clear beneficiaries. In 2022, the Energy Sector returned +65.7% (as measured by the S&P 500 Energy Index) vs. -18.1% for the S&P 500. Over the 3 years to follow the Energy Sector underperformed While it still posted respectable annual returns of 12.9% (with dividends reinvested), this still fell well short of the S&P 500’s st