It was encouraging to close out the quarter on a high note, with the AMZ trading up more than 4% during the last week of June. For the overall quarter, the AMZ was -6.35% and is -2.66% YTD. It’s worth mentioning that the AMZ’s correlation to crude prices remains above the long-term average of 39% with 2nd quarter correlation of 63.5% and YTD of 61.9%, but has come down from the elevated levels we experienced in 2015.
If one were to block off the political shenanigans, controversy and speculation from the daily news flow and only focus on everything else, two things would be obvious. First, the volume of news would be drastically reduced, and much more fun to consume. Second, technological change and its far-reaching effects seems to be accelerating across the globe. This pace of technological disruption is changing, and has irrevocably changed, how goods and services are produced and consumed. As for the later point, the pace of industrial disruption is speeding up, irrevocably altering how goods and services are produced and consumed today.