Oil is getting crushed...until the next crisis in the world. The way things are going, the next event might not be that far off.
I’m on a foundation board. We were talking about this in a board meeting, and the folks who run the fund have a industry leading Islamic fund.
Here’s the deal:
1. Has nothing to do with NorthAm fracking.
2. Has everything to do with Iran.
3. There are two axis forming around Sunni v. Shiite in the ME
Saudi/Egypt/Jordan/Israel v Russia/Syria/Iran
Iraq is so hosed they don’t matter.
Then you have the Kurds, who everyone Muslim seems to be afraid of.
SA is artificially dragging down the price of crude to starve out Russia/Iran.
What nobody is talking about right now are:
1. Russia’s military is in pretty bad shape.
2. The Ruble is toast. Predicted to end the year at 67 to the dollar. It’s at 54, and the year isn’t over.
We were 71% stock/ 29% bonds. We voted to go to 50% stock /29% bonds / remainder in cash.