ITEOTWAWKIAIFF
Everything is changing, that’s for sure, but I still feel that most of the economies globally BENEFIT from much lower oil prices. Consumption can rise in a lot of areas. The problem is that so much of the investment boom of the last few years has been IN the energy sector, that as that stops abruptly, there will be a lag waiting for consumption to catch up.
This has not been a bull market. The value of our money is about 1/3 what it was in 2008. In 2008 there were 900,000,000,000 authorized dollars in worldwide circulation. In 2009 Obama added another $900 billion. In 2010 he added another $900 billion. After that they added $87 billion per month in “quantitative easing.” Stock prices have actually dropped. The apparent rise is due to the degradation of our currency. Thank you Obama, for ruining my retirement. I had saved enough to retire comfortably. Now I’m scrambling and working harder than I ever did just to stop from going under.
The Fed is still pumping at full speed. Any downturn will be temporarily until the dollar finally crashes. We just suck less than everyone else.
It goes up. It comes down. Either way, it has always caught the gamblers by surprise.
The usual end of year tax loss selling is a contributing factor.
We will most likely be revisiting highs in Januray as earnings season ramps up.
NO...just a pause which refreshes.
Bear market is out of question so long as FED is keeping zero interest rates (ZIRP). New Highs comin before January ends.
Eventually someone will realize that when I can buy the gas I need to get to work for $26 a week instead of $39, that other $13 will go somewhere other than the energy sector. Multiply that by about 100 million. Add the reduced costs transportation of materials and consumer goods. Draw your own conclusions.
In my case I save $500 on gas and another $500 per year on other expenses like: airline tickets, fuel surcharges, utilities etc. After tax.
So at 4% return, this is equivalent to having $25,000 added to my net worth.
Not before the so called “banking and insurance” got backstopped last night.
Herds of investors also ran to and fro just before the Great Depression, causing fluctuations.
Low oil prices would be good for the economy if not for the regulations and fees against owner-building and new, small manufacturing businesses in rural areas.
According to TD Ameritrade's think or swim platform, the chances of spy touching as low as 185 by March 20 is 1 out of 2, and the chances of spy touching as low as 167 by March 20 is 1 out of 10.