Energy, often dubbed as the lifeblood of industries, holds the power to shape economies. However, the surge in energy prices has the potential to cast a shadow over the stock and bond markets, sending ripples through the intricate web of financial systems.
In this episode, Rusty talks with Jake Hanley, Managing Director and Senior Portfolio Specialist at Teucrium. Jake has an intimate understanding of investment strategies made available through Teucrium's funds. He is partly responsible for certain fund-related daily operating procedures and acts as an alternate for specific dual control functions.
Rusty and Jake weigh potential scenarios and risks associated with rising energy prices. With over a decade's experience in financial services, Jake also shares Teucrium's current macroeconomic outlook, how to mitigate the negative effects of rising energy prices, and the other risks investors should know about.
Key Takeaways
[03:11] - Jake's background and his work at Teucrium.
[05:02] - Jake's definition of risk.
[06:52] - Teucrium's current macroeconomic outlook.
[08:30] - The potential impact of rising energy prices on the economy and markets.
[10:31] - Jake's outlook on other commodity markets, such as agriculture and precious metals.
[13:04] - How to mitigate the negative effects of rising energy prices.
[15:11] - How advisors allocate commodities in their portfolios.
[17:16] - Other potential risks to consider, such as the situation in Russia and Ukraine.
[19:13] - Base case scenario on rising energy prices.
[22:06] - Good case scenario on rising energy prices.
[24:44] - Bad case scenario on rising energy prices.
[27:19] - Other risks investors should be aware of.
Quotes
[08:13] - "The foundation for all capital markets is international trade currency and sovereign debt. And as you have quakes and tremors in those markets, it's going to reverberate throughout all asset classes. That's why the broad macro view right now is volatility." ~ Jake Hanley
[09:07] - "Energy is the lifeblood of the industry. So higher energy prices either mean lower profit margins for corporations producing goods and services or higher consumer prices." ~ Jake Hanley
[21:57] - "Energy prices moving up can act as a cap for future economic growth. Higher prices can cure high prices." ~ Jake Hanley
Links
Jake Hanley on LinkedIn
Jake Hanley on Twitter
Northeast Kingdom by Will Evans
Teucrium
Teucrium ETFs on Twitter
Vermont Flood Disaster Relief (Teucrium's Matching Gift Program)
Ameriprise Financial
Merrill Lynch
Jackson Hole Economic Symposium
Connect with Us
Meet Rusty Vanneman, Orion's Chief Investment Officer
Check Out All of Orion's Podcasts
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Disclosure
Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.
2356-OAT-8/25/2023
