Bottom-calling bets on $4.3 billion energy ETF go bad amid oil plunge

Historic turmoil in the oil market is proving painful for investors who just piled into a US$4.3 billion energy ETF.

The United States Oil Fund LP, or USO, plunged as much as 11 per cent to hit the lowest since its 2006 inception amid a sell-off in crude. USO’s slide came after investors plowed US$1.6 billion into the exchange-traded fund last week — the best on record.

USO is a popular choice for retail investors looking to bet on short-term price reversals, buying dips and selling rallies. However, those bets soured Monday. Crude plunged as a deadly pandemic ravaging global economies threatens to erase an entire decade of demand growth, slashing thousands of jobs and wiping out hundreds of billions of dollars from company valuations.

“Traditionally, this product is used to play mean reversion. It also attracts outsiders whenever oil is so low it makes the nightly news,” said Eric

Read More

Japan tests show 11 dead were infected with coronavirus: media By Reuters

2/2
© Reuters. Outbreak of the coronavirus disease (COVID-19) in Tokyo

2/2

TOKYO (Reuters) – Japanese police reported last month the deaths of 11 people deemed to be unnatural before tests showed the victims had been infected with the new coronavirus, media said on Tuesday.

Japan, with more than 260 virus-related deaths according to public broadcaster NHK, has avoided the kind of explosive outbreak that has plagued the United States and many European nations, raising questions whether it is testing sufficiently.

Some of the 11 died at home and one was found lying in the street, the business daily and other media said, citing the National Police Agency.

Six were in Tokyo, the capital, where virus cases have topped 3,000, from a nationwide tally of 11,157.

Contacted by Reuters, the National Police Agency said it could not confirm the facts before receiving questions by fax.

One of the cases police

Read More

Who will pay for the coronavirus bailout? If you’re under 50 and working, you will

America’s cable TV anchors and policy experts are paying scant attention to what’s arguably the most damaging and enduring aftershock from the COVID-19 pandemic: the outbreak in deficits and debt to levels not witnessed since World War II.

The U.S. was facing a dire fiscal future before the crisis struck, but the economic lockdown, and the gigantic new spending enacted to combat it, brings the day of reckoning far closer. By borrowing multiple trillions at a pace never before seen, the U.S. is endangering the sterling credit that makes Treasuries and the dollar the safest of havens for global investors. It is likely that within the next decade, the U.S. will need to impose monumental tax increases. What America’s leaders aren’t saying is that it’s the middle-class Americans working today, the autoworkers, nurses, and deli owners, and not just their future generations, who’’ll foot most of the bill.

Says Brian … Read More