2 Charts of the Day: The 1790’s Credit Default and Crude Oil Self Correlation

A great day for our weekly chart of the week when we pull up our twitter feed and see charts like these featured on a Business Insider article titled, “Wall Street’s Brightest Minds Reveal THE MOST IMPORTANT CHARTS IN THE WORLD.”

The first observes Crude Oil contracts through the lens of placing 3 different contracts (1-month, 12-month, and 16 month contracts) side by side. It appears as though the three are correlated through previous event risk situations such as the Arab Spring, and Iran fears, but then moves in different directions during the chemical weapons attack in Syria.

Crude Oil 3 Contracts(Disclaimer: Past performance is not necessarily indicative of future results).
Chart Courtesy: Business Insider

The second chart goes back to the birth of our nation to see previous U.S. debt defaults. However, Peter Tchir, founder of TF Market Advisors explains that while there has been much anticipated negative hype surrounding this round of debt ceiling talks, it’s not different from any other debt ceiling debate.  If you want more information on the recurring debt debate, the award winning TV show “The West Wing” explains in less than a minute why these debts are both routine and end of the world scenarios.

U.S. Government Defaults(Disclaimer: Past performance is not necessarily indicative of future results)
Chart Courtesy: Business Insider


Write a Comment

The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.