Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Peak Oil: This Saudi Doesn’t Understand Either

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Peak Oil will always be a controversial theory… always.

But it’s a reality.

What’s maddening is explaining it over and over again to people that don’t get it.

For example, as Dr. Sami Al-Nuaim reported in the Saudi Gazette:

In the last few years, there were several attempts from several non-specialized writers in the Saudi media to advocate for what is called “Peak Oil Theory” that wrongly predicts dark future for oil production. 

This theory was introduced in the US after the oil embargo in early 70s by some bankers stating that when 1/2 of the oil reserves in any field is produced, the production will follow steep decline. This concept is based on a probability theory that is not linked to any scientific facts or physical laws that govern oil production in oil reservoirs. 

In addition, what makes this theory completely false is the fact that it totally ignores the impact of technological advancements in increasing the recovery factor and the probability to find new oil discoveries. (more…)

The Reality of Reality

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One can’t sit back this weekend without feeling a little overwhelmed with what took place in Boston. Being a person whom both worked and lived around Boston, I like many watched intently as everything unfolded.

To see streets you know intimately shown across the television while explosions are going off. Then to view one of the busiest cities traffic wise shut down resembling as one reporter put it “The streets of Chernobyl.” You just can’t help but shake your head in bewilderment. (more…)

Precious Metals Ratios

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With all the action we’ve seen in the precious metals sector, I was wondering if comparing miners to gold, gold to silver, junior miners to regular miners, or any other comparison would create a flash of insight. I’m afraid not. Maybe my mind is too muddled, but after monkeying around with various arithmetic combinations, I have to warn you that this post is flash-free.

I did find the comparison of junior minors to the big boys to be mildly interesting; what we can certainly conclude from this is that as bashed as miners have been, junior miners have been getting uber-bashed. There’s been a flight to quality, as it were, although “quality” in this respect is a relative term. (more…)

Money Flow for April Week Three

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Volatility, profit-taking, mayhem, and tragedy…this is how I’d summarize the events that took place in world markets, as well as on American soil, this past week. My deepest sympathies go out to those law enforcement, fire fighting, and civilian victims who died or were injured in connection with the Boston marathon bombings and the Texas fertilizer plant explosions, and to all their friends and families. My thoughts and prayers are with you…may we all find answers to these terrible tragedies, and, may all those who are responsible, be brought to justice. (more…)

Maybe Too Big To Fail…

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…But certainly not too big to short.  Here’s a weekly chart of XLF highlighting the peak to trough corrections following the weekly overbought readings going back to 2007.

Zooming into the daily charts, let’s just focus on the top 5 holdings of XLF, as they comprise nearly 37% of the holdings in that widely held financial ETF.  As noted on the charts, Berkshire Hathaway cl. B, which is the largest component of XLF, is comprised of nearly a 20% stake in Wells Fargo Corp, which is also the third largest component of XLF.  Therefore, WFC is definitely one to keep on your radar.