Executive Summary
Yields on longer-term US Treasuries have surged to 20-year highs, competing directly with equity allocations, as Texas anchors a massive energy infrastructure revolution driven by global supply shifts and refined fuel shortages.
- Surging Treasury yields reaching 20-year+ highs competing with equity markets.
- The Texas energy infrastructure revolution amidst a global fuel crisis.
- Key strategic macro events shaping financial performance in Q4.
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Financial Headline Roundup!
Here is a comprehensive breakdown of this week’s key market developments, energy investments, and macroeconomic trends.
- Bond Market Perfect Storm: Yields soar across longer-term Treasuries.
- US Mortgages Surge Over 7%: Rising rates force home sellers to slash asking prices.
- Tax-Exempt Municipals Hit Bargain Levels: Investment-grade muni bonds back in deep value territory alongside record ETF inflows.
- Texas Energy Forecast: Bank of America targets crude at $95 by year-end, $80 for 2027, with spike potential to $150 on supply shocks.
- Oil Tanker Shortages: Global shipping constraints add $26 per barrel in transit costs.
- $22.3B Natural Gas Plant for Encinal, TX: South Korea makes a massive energy infrastructure investment in Encinal (Pop. 540).
- Business Expansion Accelerates: US business activity posts its fastest expansion rate in 5 years.
- Multi-Family Commercial Real Estate Stress: Apartment values decline 20% with $757 billion in debt maturing before the end of 2028.
- Andreessen Horowitz Launches AI Academy: Direct high school pipeline program for elite AI training.
- Michael Burry Shorts Semiconductor Leaders: Scion Asset Management takes short positions in Micron and Palantir, signaling a semiconductor down cycle.
- US Dollar Index Strengthens: Greenback surges to an 8-week high against major peer currencies.
- Blockchain Instant Settlements Arrive: SoFi Bank and Mastercard collaborate to launch instant settlement infrastructure.
- Europe Outbids Asia for LNG: Liquefied Natural Gas prices hit $26/MMBtu as European buyers secure winter supply.
- Big Oil Production Output Soars: Major producers boost total output despite operating under deep capital expenditure cuts.
- Uber Commits $10 Billion to Robotaxis: Major capital allocation toward autonomous ride-hailing fleets.
- Meta Stock Spikes on Muse AI: Strong reception for new generative AI suite drives share price gains.
Wealth Management Topic of the Week - Burton G. Malkiel Case for Portfolio Rebalancing: Former Vanguard Director highlights attractive yields in fixed income and the compelling setup to rebalance portfolios into high-quality bonds.
The Charts and Graphs Featured in This Week's Show
Nymex First Month 321 Crack Spread Daily Candlestick Chart (Daily 9/24/2016 – 9/24/2026)
Courtesy of Bloomberg LP
US Generic Govt 30 Yr Daily Candlestick Chart (Daily 9/24/2001 – 9/24/2026)
Courtesy of Bloomberg LP
iShares 20+ Year Treasury Bond ETF Daily Candlestick Chart (Daily 9/24/2016 – 9/24/2026)
Courtesy of Bloomberg LP
US Treasury Actives Curve (Mid Yield to Maturity 14:16:55)
Courtesy of Bloomberg LP
Daily National Average Gasoline Prices Diesel Line Chart (Daily 9/23/2016 – 9/23/2026)
Courtesy of Bloomberg LP
Dow Jones Industrial Average Daily Candlestick Chart (Daily 7/24/2025 – 9/24/2026)
Courtesy of Bloomberg LP
S&P 500 Index (SPX)
Courtesy of Bloomberg LP
State Street Energy Select Sector SPDR ETF (XLE)
Courtesy of Bloomberg LP
Financial Research Round Up!
Valuable Research Reports Just Click on the Links
BlackRock: Infrastructure For Portfolios
AllianceBernstein: Deep Value Stocks: Cashflow Driven Continuing Comeback.
Cohen and Steers: Today’s Retirement Portfolios Need a New Inflation Playbook.
