Editor: Dog Days Never Last

Returning to southern Connecticut from a holiday in coastal northern Maine is simply brutal. From kayaking with seals and porpoises at arms length in 3 foot sparkling swells to 100 plus Fahrenheit on the heat index, humidity so oppressive that it’s a challenge to breath and a real world market, both shipping and otherwise, in such a flux, it makes one contemplate the value of the professional pursuit. Of course there is value, and also because just like these, as we Yanks like to say, are the “Dog Days of Summer”, they don’t last forever and often, they are over as quickly as they came..

Case in point may be the brutality of the equity markets on tanker equities over the last few weeks. While the US markets have been brutal to everyone this year and for much of last, tanker shares remained valued for most of this year at levels above their traditional valuations. A number of factors caused this including newly listed companies improving interest in the sector but the overriding one was not that these companies had good stories to tell, but that they were small to mid-cap shares that participated in a deeply cyclical market and thereby, so the theory goes, have some predictable elements which made them attractive in the current market against larger companies with no earnings, convoluted structures and no clear path to profitability or simply companies which were overvalued as virtually the entire S&P 500 was, and indeed is today.

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