Opening Statement from the May 2022 Intelligent Investor (part 1)

Opening Statement from the May 2022 Intelligent Investor (part 1)

Originally published on May 4, 2022

Oil and Gas

Although crude oil price volatility has decreased since reaching its highs in early March, it’s still quite high. Meanwhile, the US dollar index has soared to a 20-year high as traders anticipate an aggressive series of rate hikes by the Federal Reserve.

On May 4, oil and gas prices soared after the European Union announced a proposal to gradually phase out Russian crude oil imports within 6 months and refined crude products by the end of the year. 

US Dollar Strength

We expect nations that begin to raise interest rates to generally have a better chance of their currencies strengthening against the dollar. Resource exporting nations like Australia stand a better chance of its currency strengthening against the dollar provided its central bank raises short-term rates in a manner that resembles that of the US Federal Reserve. 

The Russian ruble continues to gain strength versus the US dollar...