Oil plunged yesterday following DOW's 770 point decrease. Russian stock trading suspended 10 minutes into the session. Why? Fears that oil prices will fall further due to perceived threat of recession in US. Why is that a problem? Oil taxes fund 50% of Russian government. Any decrease in demand for oil will bring less money into government treasury.
Oil is heading lower. Look back to earlier posts.
Tuesday, September 30, 2008
Tuesday, September 23, 2008
OIl price confirms inflation prediction
Oops. Maybe oil won't be dropping to $90 per barrel. Someone told me that yesterday's remarkable spike in price was due to short sellers covering their positions. Another explanation is that the markets realize that the US government will be required to deflate the currency in order to pay for the huge financial industry bail-outs, and that that future inflation is reflected in today's oil price.
In any event, oil could still reach $90 a barrel.
This prediction is based on a completely different criteria. I heard last Friday that the Texas Railroad Commission is seeking new workers to process the large backlog of drilling permits that it has. This to me is a sure sign that the oil drilling boom in Texas at least has peaked.
Remember when every person you knew was going to be a mortgage broker because fortunes were being made in the housing industry? This was a clear indication that the housing bubble was at the top.
Same thing here. When everyone and his dog wants to be a wildcatter, we know the market has topped. Another way to check this production is to see how many petroleum engineers are graduating. If it is at an all time high, the top has come and gone. Look for another short term collapse in oil prices.
In any event, oil could still reach $90 a barrel.
This prediction is based on a completely different criteria. I heard last Friday that the Texas Railroad Commission is seeking new workers to process the large backlog of drilling permits that it has. This to me is a sure sign that the oil drilling boom in Texas at least has peaked.
Remember when every person you knew was going to be a mortgage broker because fortunes were being made in the housing industry? This was a clear indication that the housing bubble was at the top.
Same thing here. When everyone and his dog wants to be a wildcatter, we know the market has topped. Another way to check this production is to see how many petroleum engineers are graduating. If it is at an all time high, the top has come and gone. Look for another short term collapse in oil prices.
Friday, September 19, 2008
Inflation
Remember this word...inflation.
Our currency will be devalued at a very high rate to pay for the bailouts so generously offered by the Bush people. IF the government can pay these debts back with cheaper money, it can work.
We will need to learn how to handle inflation all over again.
Investors, remember that as inflation rises, the relative attractiveness of the stock market will decrease, lowering prices and returns.
Our currency will be devalued at a very high rate to pay for the bailouts so generously offered by the Bush people. IF the government can pay these debts back with cheaper money, it can work.
We will need to learn how to handle inflation all over again.
Investors, remember that as inflation rises, the relative attractiveness of the stock market will decrease, lowering prices and returns.
Wednesday, September 17, 2008
Tuesday, September 16, 2008
Yesterday
Yesterday's financial news is the best news stock market investors have had in months.
There have to be consequences for stupid investment decisions.
Financial firms contribute nothing "real" to people.
Look for companies that produce products that have tangible use and value. Make sure those companies do so at a profit on each unit they produce. Financial firms cannot do this function.
The value of today's news is that all stocks will sag in price. Those companies with profitable activities will rebound more quickly.
Ignore Monday. Blip.
There have to be consequences for stupid investment decisions.
Financial firms contribute nothing "real" to people.
Look for companies that produce products that have tangible use and value. Make sure those companies do so at a profit on each unit they produce. Financial firms cannot do this function.
The value of today's news is that all stocks will sag in price. Those companies with profitable activities will rebound more quickly.
Ignore Monday. Blip.
Monday, September 15, 2008
OIl Price Plummets
Watch to see how low it goes. Fell below $100 today in the stock market downdraft.
Friday, September 12, 2008
Not disabled enough
Kurt Vonnegut wrote about non-disabled ballet dancer being shot while in mid-air by the discrimination police. Now, in the disabled olympics, a man with cerebral palsy was declared too fit to compete. Wow. That's breathtaking.
Tuesday, September 2, 2008
$65 oil forecast!
Oil will likely drop further in the next three to six months, according to investor Marc Faber, who reiterated his forecast that the second half of 2008 won't be ``favorable'' for commodities.
The decline in crude, which today slid to a five-month low, is a ``symptom'' of economic slowdowns in the U.S. and Europe, Faber, who forecast the so-called Black Monday crash in 1987....
The decline in crude, which today slid to a five-month low, is a ``symptom'' of economic slowdowns in the U.S. and Europe, Faber, who forecast the so-called Black Monday crash in 1987....
Subscribe to:
Posts (Atom)
