A largely-ignored driver of the robust Trump Economy—and the record-high S&P 500—has been low energy prices. Sign at 76 gas station in Lafayette, California, showing high gas prices, February 26, 2018. As the Wall Street Journal pointed out this morning, U.S crude oil production has increased by 127% since 2005, while natural gas production has increased 87%. I believe this is especially true in the case of natural gas, prices for which have been in a depression since November 2014. So, the prospect of higher energy prices, although certainly not reflected in today’s futures curves, presents a headwind for the U.S. economy heading into an election year.

Source: Forbes November 18, 2019 18:22 UTC