Matthew Lekushoff |


The performance of most markets for the 2018 calendar year remains near zero. Leading the pack over the last two weeks have been oil and energy stocks, which accelerated their strength that began over a month ago. The sector seems to have momentum on its side, especially when it comes to energy securities.

The price of oil has uncharacteristically performed much better than energy securities this year. As this is not usually the case, it's reasonable to expect this gap to close in the future, especially when it comes to energy securities.

Although not a perfect storm, a number of factors have influenced oil's performance. Inventories have fallen dramatically in OECD (Organization for Economic Co-operation and Development) countries; the supply of oil by OPEC (Organization of Petroleum Exporting Countries) members has surprisingly stayed within targets; China, the world's biggest importer of oil, has increased the amount of oil it is processing; Venezuela is pumping considerably less oil given their economic troubles; increased tensions in the Middle East; and global demand for oil has increased.

On the other side, energy flow from U.S. shale producers has risen and expectations are for even higher levels in the future. This has also broadened the divide between the two different types of oil traded on global markets. Brent crude, which is produced and delivered largely to international customers, is about eight dollars per barrel higher than sweet crude, which is more commonly produced and consumed within the U.S.

Expectations support the thesis that energy prices and securities should rise in the future. However, as things can change quickly, so can this notion. 

As one might expect, with energy stocks comprising almost 20% of the Canadian stock market valuation, the TSX has benefited from rising oil prices. For the first time in some time, the TSX is close to breaking even for the year. This strength should continue, as valuations on the TSX are lower than many other global markets.


Surely You're Joking, Mr. Feynman! Adventures of a Curious Character  by  Richard Feynman: Richard Feynman was a towering presence in physics, but this book isn't about that. It's a collection of stories that provide a window into a most interesting life-----  a life in which Feynman learned how to play the bongos and pick locks, became a commissioned artist, moved to Brazil, crashed on public couches, and pursued adventures for the sheer joy of learning something interesting and having fun.
How to Pick a Career (That Actually Fits You)  by Tim Urban: I'll read anything Tim Urban writes, even his  website profile , in part because he's hilarious and conveys esoteric ideas through stick figures. He's also brilliant at simplifying the complicated-----  partly because he writes about topics he knows little about before researching them, so he remembers what it's like not to know.
Reading a Wait But Why post is like finding a lost scroll written by wise ancients----- who turn out to be foul-mouthed and immature. His posts are well-researched, insightful and funny-----  laugh out loud funny!
His latest post is ostensibly about how you pick a career that's right for you, but in true Urban fashion, it's about so much more. 
Tim Ferriss Podcast  or  Invest with the Best interview  will give you an idea about what he and his work are all about.
Here's What Oil at $70 Means for the World Economy  by Bloomberg : With oil prices on the rise, it's important to remember that this will benefit some and hurt others. This Bloomberg article provides an indication of how the global economy may be affected.
Regrets of the Dying  by Bronnie Ware: We all go through life trying to do our best. Inevitably, we'll make mistakes along the way. Ware provides insight into what most people end up regretting-----  so we don't regret them too.
Principles for Success   by Ray Dalio: I read Ray Dalio's book,  Principles , last year and loved it. Last week, he released eight short videos summarizing the main points of the book. If you want to find out what it's about or want a review, I think you'll enjoy the videos.
Map: The Top Tourist Attraction in Every Country  by Visual Capitalist: If you're looking for a summer holiday destination, this infographic may help!


"Fall in love with some activity, and do it! Nobody ever figures out what life is all about, and it doesn't matter." 

"You have no responsibility to live up to what other people think you ought to accomplish. I have no responsibility to be like they expect me to be. It's their mistake, not my failing."  

"We are trying to prove ourselves wrong as quickly as possible, because only in that way can we find progress."   


Like many of you, I grew up watching Mr. Rogers. While I enjoyed watching him, I had no idea how ground-breaking "Mister Roger's Neighborhood" was.

The trailer for the upcoming documentary on Fred Roger's life, and the show he made famous, is a nice walk down memory lane. It also shows how he was ahead of his time.  

Matthew Lekushoff

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