HA! Another Jedi mind trick to try to get Americans to pine for higher gas prices.
That just means more Americans can now afford to buy Caterpillar stocks.
Ciarra gave us the price of oil but not the price of Caterpillar's stock.
Truckers and ordinary consumers will certainly benefit from lower gas prices.
Seems to me other sectors Cat is in may pick up because of lower fuel prices, but I assume the ‘pros’ know best.
Haven’t read anything clear about the real sufferers from the low price- those who are locked in to high future delivery. I suppose those who actually use the fuels, transportation, are protected because their competitors are in the same position as they are and no one has an advantage.
Speculators are balanced, or prepared to take the hit.
Falling oil’s next victim: banks
http://money.cnn.com/2015/01/16/investing/oil-price-fall-banks-hurt/
...Cheap credit helped fuel the U.S. shale boom, allowing countless energy companies to find oil in new places. Banks also capitalized on economic booms in oil-rich regions like Texas and North Dakota. It would only make sense for these same banks to feel some pain from oil’s downward spiral.
Drilling projects that made sense at $100 may now be losing money, creating headaches for the lenders that financed the expansions. Some highly-leveraged shale companies may even go belly up due to the plunge in oil prices....
Even Wall Street banks are facing questions about the impact of falling oil prices.
While just a small fraction of their total loan portfolio is directly tied to energy lending, Bove estimates around 20% of their investment banking revenue comes from energy....
Gloom. Despair. Agony.
How? Oh how did Caterpillar manage to survive 89+ years, even when oil dropped to as low as $9.00 a barrel back in the 1980s and oil producers were capping pumping wells? How?
Oh the humanity!
It had nothing to do with the higher US Dollar vs. the Euro and JPY?
This stock, sporting a 3% plus dividend, is a buy. I’m probably buying a couple hundred shares next week.
Buy on the dip!!