Oil's price might be even higher than you think. When investors talk crude, they typically refer to the cost of a barrel in Cushing, Okla. That's where traders store West Texas Intermediate crude, and it's this type of oil that trades on the New York Mercantile Exchange. But some investors are frustrated with West Texas crude. Bottlenecks in Cushing have led to a buildup of supply, and oil traded at $92 per barrel on Wednesday. Brent crude, another type of oil that is traded in London, was $6 more. The spread between the two reached $8 recently, the second-highest ever. That was enough for JPMorgan strategists. They now use Brent as their benchmark for oil prices, saying it is a better gauge of the global market.
Some respect
U.S. investors often get little credit when it comes to foreign stocks. Americans buy into countries only after they've made their big gains, the theory goes. But U.S. investors should be getting more respect, according to research from the Federal Reserve, University of Virginia and a Thai securities company. They found that instead of chasing past winners, U.S. investors tend to trim them from their portfolios. Such behavior means U.S. investors are selling high instead of buying high.
Ahead of the curve
Coffee prices are surging. Wholesale costs have jumped above $2.30 per pound from about $1.40 a year ago. That's pinching coffee houses and retailers. But the Caribou Coffee chain isn't feeling it yet. The company has already bought all the coffee it will need for the first six months of 2011 at $1.35 per pound, Jefferies analysts wrote in a recent report. That means it can hold prices steady for the coffee it sells at grocery stores while competitors have to raise prices. It could use the help. Its stock returned 26 percent over the 12 months through Wednesday. Starbucks returned 42 percent, including dividends.
(Source: http://seattletimes.nwsource.com/html/businesstechnology/2014009867_pulse23.html)
No comments:
Post a Comment