Black Swans & Drones

Sep 17th 2019 Dear InvestingChannel Reader, As expected, Brent Crude futures [surged]( as trading opened after news of a sophisticated attack on Saudi oil and gas infrastructure that included drones and possibly [cruise missiles](. What’s surprising, at least to me is how little effect this had on futures markets, even after the market opening price surge, prices are [lower]( than they were for most of April. It seems that either the market has efficiently priced in most geopolitical risks or simply that Saudi refining capacity does not have the all powerful sway over oil prices that it once had given increased North Amercian energy production. In particular, the North American shale industry should be paid close attention to as increased demand may keep a number of [highly leveraged]( upstream and midstream players out of bankruptcy. Below we are going in-depth on commodities markets with a few pieces of additional bonus content: - [IPO Update: WeWork Scraps Plans for IPO on Disappointing Demand]( - [The Black Swan Event to End All Black Swan Events]( - [Top Wall Street Analysts on Saudi Attack]( - [Corruption in US Gold and Silver Markets Uncovered]( - [Three ETFs to Watch After Saudi Strike]( - [Predicting the Next Recession]( - [BONUS: 11 Years After the Collapse of Lehman]( [Try Mini-S&P 500 Index Options (XSP℠)]( Gain the benefits of comparable ETF options, plus get cash settlement, no early exercise, and may qualify for 60/40 blended tax treatment. [Learn to trade XSP today.]( Sponsored by CBOE Charles Hugh Smith argues that the media is failing to take into account the higher order effects of a successful drone attack of this magnitude. If you follow Smith’s logic to its full conclusion, the risk premium across industries will need to be adjusted significantly, not just in oil and gas but even into less geopolitically sensitive industries like retail. [The Black Swan Is a Drone]( [(Of Two Minds)]( The real impact isn't on short-term oil prices, it's on asymmetric warfare: the coordinated drone attack on Saudi oil facilities is a Black Swan event that is reverberating around the world, awakening copycats and exposing the impossibility of defending against low-cost drones of the sort anyone can buy. [Click here to read more.]( Jayson Derrick brings a round up of top security and oil gas experts takes on the attack in Saudi Arabia to Benzinga. [Oil, Security Pros React To Saudi Drone Attack: 'There Are No Easy Answers Here]( [(Benzinga)]( Had the attack occurred 10 years ago, it would have been a "much more panicky situation," Dan Yergin, vice chairman at IHS Markit, also said on "Squawk Box." Nevertheless, the drone attack is the single largest disrupting event for the oil market and begs the question: "what comes next?" [Click here to read more.]( [Free Options Webinar]( Join OIC for an exploration of Options Strategies for Higher Volatility. Our industry professionals will cover these strategies in detail, offering visual examples for added effect. Watch today! [Click here to read more.]( Sponsored by The Options Industry Council In non-energy related commodities news; Silver Doctors covers the recently unsealed indictment against current and former JP Morgan precious metals futures traders. [JP Morgan Was Criminally Rigging The Gold & Silver Markets In A Conspiratorial Racket? INCONCEIVABLE]( [(Silver Doctors)]( Two current precious metals traders and one former trader in the New York offices of a U.S. bank (Bank A) were charged in an indictment unsealed today for their alleged participation in a racketeering conspiracy and other federal crimes in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences. [Click here to read more.]( [3 Aerospace And Defense ETFs Benefiting From Turmoil In The Middle East]( by [Benzinga]( When geopolitical headwinds howl, particularly those flowing from the Middle East, it's reasonable to expect that among the various sectors and industries, energy stocks will be affected. [Read more.]( [One asset on everyone’s radar is art]( Sponsored by [MasterWorks]( Blue-chip art has outperformed the S&P by 180% since 2000. Now, an exclusive members-only platform allows anyone to invest in art. [Read more.]( [Update: Predicting the Next Recession]( by [Calculated Risk]( Once again the recession callers are out in force. This time it is the global slowdown, the trade war, the jump in oil prices due to the attack on Saudi production facilities, and the Fed Funds rate being too tight (with an inverted yield curve). [Read more.]( Copyright 2019, Investing Channel, All Rights Reserved | [Privacy Policy]( [InvestingChannel, Inc.]( P.O. Box 118 New York, NY 10018. To unsubscribe, [click here]( [Link](