<< <i>My point is that every driver HAS to use fuel saves some money when prices drop, and the more they HAVE TO use, the more money they save, which will flow, in the aggregate, in other directions in the economy, and that's generally good for most folks. >>
In reality most will see it as higher disposable income and increase their revolving debt or finance a little bit nicer car. When prices rise again, and they always do, the increase in debt will remain. A false sense of income growth can be bad for most folks, especially those like my son that live in perpetual debt. To them a raise means they can increase their credit card debt.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>My point is that every driver HAS to use fuel saves some money when prices drop, and the more they HAVE TO use, the more money they save, which will flow, in the aggregate, in other directions in the economy, and that's generally good for most folks. >>
In reality most will see it as higher disposable income and increase their revolving debt or finance a little bit nicer car. When prices rise again, and they always do, the increase in debt will remain. A false sense of income growth can be bad for most folks, especially those like my son that live in perpetual debt. To them a raise means they can increase their credit card debt. >>
This^^ The majority of American people now days have been brainwashed with these rigged debt games that the bankers run. Most of our grandparents understood that you paid as you went and that you had to save money for hard times. Those days are long gone. Enjoy the cheaper gas prices for now. They will make up for those losses at our expense in the end.
China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match which results in everyone losing.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match. >>
The old war mongers did toss those additional billions in the Omnibus bill to keep the war fires fully stoked.
<< <i>Those overextended when the tide changes pay the prices, it doesn't matter what the details are, if a business or portfolio can't withstand the perfect storm or "worst case" then it will suffer, relative to those betting the other way in that case, or covering more of the spots on the board, generally >>
That was generally true in the world of old, stuffy economics. Today the taxpayer eats the cost of greed, stupidity and general risk. >>
And true in the case where those making the derivatives models truly understand what the worst case scenario is.
If any of the big banker idiots had a clue we wouldn't have the phrase "too big to jail."
" the more money they save, which will flow, in the aggregate, in other directions in the economy, and that's generally good for most folks."
There are a great many items, of which their falling price would benefit most folks. Funny that some are pretended to be critical, and must be bailed out.
<< <i>If gasoline has declined by 1/3rd, then that means their average driver would have spent $3000/yr, or $250/month. I find it hard to believe the average person drops $250/month.... so households with man, wife, and a young driver drop $750/month on average? Sounds iffy to me. >>
15000 miles per year ÷ 25 miles per gallon is 600 per year. Price is down well over a buck in CA and going lower which will result in considerable savings.
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match which results in everyone losing.[/]
A Chinese bailout would not come without cost. Russia will lose its country. China now has the capability of building much more sophisticated weaponry then anything Russia could even dream about. China could use more land now since their is "dirty".
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match which results in everyone losing.
A Chinese bailout would not come without cost. Russia will lose its country. China now has the capability of building much more sophisticated weaponry then anything Russia could even dream about. China could use more land now since their is "dirty". >>
Economic war has reached the point for new alliances. Russia knows this as does China.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
How low will it go and when will the rebound start? Couple of us have WTI in the game this year, so I vote for it going back to 90ish around Dec 31, ha!
Oil wont go higher than 78 this year, and quite possibly no higher than 70--which would be a 38% retracement off todays low, which i think could be a short term low but maybe one more quick drop under 50 to take out the last of the stops. The break to 49.95 didnt quite take out enough of the "i cant take it anymore" traders.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
Lots of articles now about how many of the oil companies were well hedged. Wouldn't the big losers be the ones on the other side of those contracts? I wonder who they are and hope they won't be asking for bailouts, it must be a fortune of someones money. Articles say that Mexico and many fracking companies are covered well and some are taking the cash from their first line of hedges and going further out at lower prices.
<< <i>Oil wont go higher than 78 this year, and quite possibly no higher than 70--which would be a 38% retracement off todays low, which i think could be a short term low but maybe one more quick drop under 50 to take out the last of the stops. The break to 49.95 didnt quite take out enough of the "i cant take it anymore" traders. >>
...$49.15 this morning with predictions by "experts" calling $30-$35.
Oil is the current black swan. It will continue to bring everything else down with it. What can be done to reverse it, and when, remains to be seen. A new challenge for the money masters.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
$48.79 as we speak. Might be worth Russia's while to stir up some trouble somewhere just to nudge it back up.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
While the American consumer continues to enjoy saving a couple of gas dollars each week, the questions on low oil prices that remain are:
As other nations see their economies crumble will they bow to the US effort to reaffirm king dollar?
How long will US oil jobs (lots of them) and US exports be sacrificed to reaffirm dollar superiority?
At what point does the US pull the plug on oil price deflation and how?
At what point do US politicians feel the heat and say "enough?"
When does the currency race to the bottom resume in order to stimulate exports/jobs?
At the moment oil is the canary in the coal mine.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Oil stores ended December rather high at 1.14 billion barrels, excluding another 700 million in the strategic reserve, increasing 17.9 million barrels, nearly 2/3 of which was refined products rather than crude. Stocks usually decrease in December as refiners position for tax advantage. However, refiners are running at 85% utilization on average. The oil futures curve slopes upwards, pushing future marginal excess oil to storage rather than market. With OPEC maintaining output, stocks are likely to keep building and prices falling, unless and until North American output responds to lower prices by contracting, however that process takes some time, meanwhile refiners produce, store, and hedge. Commercial stocks now cover about 9 months of net imports, with strategic reserves nearly 15 months. Geopolitical shocks or seasonal weather may offer a wild card, but once played out, then what? I still think lower oil prices are a net positive for the country, of course the energy sector will have to adapt. But adapting is what America is actually pretty good at, our economy and dollar may turn out to be the tallest munchkin in Oz. Numbers sourced from energy dept via wall street journal.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor.
Gas at $1.79 most places here. Oddly enough, I passed one station yesterday that had Regular gas at $1.79, and the "cheaper alternative" E-85 at $2.13! Must still have a tankful that he bought high while gas was falling.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor. >>
In late December 2008 crude oil plunged as low as $30.28 per barrel.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor. >>
Lots of factors involved.
But right now in my town diesel ranges from $2.69 to $3.79.
Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal?
Q: Are You Printing Money? Bernanke: Not Literally
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal?
Down around $46.50 this morning. Gas at $1.69 here.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
Propane $2.19 a gallon here Has been same price since August 2014. I called state agency's complaining of prices, they found it humorous I was complaining compared to last year $4 a gallon price.
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal?
Is that a big deal? What does a typical stock market correction run? 10% in a bull market? something like that. And PEs can go lower than 15X earnings, can't they? Maybe not for the S&P500, I haven't studied that lately.
After a stock market run like this one, I'd say that a 10% to 12% blowoff is almost insignificant, unless it's not just a blowoff. If it's a trend reversal, then it could very well correct 50%, right?
You should keep in mind that these are not normal times. We've never had a Fed so heavily involved in a balance sheet expansion of this magnitude or duration. I don't think that any one of us really knows what that means for the stock market in the long run.
Martin Armstrong seems to make more and more sense every day.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal? >>
How much of the $118 will go up because of cheaper transportation costs? Could it fully offset the $6 loss?
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal? >>
How much of the $118 will go up because of cheaper transportation costs? Could it fully offset the $6 loss? >>
Its possible. Thats why I stated I would like to see the analysts computations.
Everyone trying to compare this oil drop to what happened in 2008 but there are very very few similarities.
The cheaper oil gets and the longer it remains cheap will dictate new car demand. New cars have catalytic converters. Catalytic converters require palladium.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Comments
<< <i>My point is that every driver HAS to use fuel saves some money when prices drop, and the more they HAVE TO use, the more money they save, which will flow, in the aggregate, in other directions in the economy, and that's generally good for most folks. >>
In reality most will see it as higher disposable income and increase their revolving debt or finance a little bit nicer car. When prices rise again, and they always do, the increase in debt will remain. A false sense of income growth can be bad for most folks, especially those like my son that live in perpetual debt. To them a raise means they can increase their credit card debt.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>My point is that every driver HAS to use fuel saves some money when prices drop, and the more they HAVE TO use, the more money they save, which will flow, in the aggregate, in other directions in the economy, and that's generally good for most folks. >>
In reality most will see it as higher disposable income and increase their revolving debt or finance a little bit nicer car. When prices rise again, and they always do, the increase in debt will remain. A false sense of income growth can be bad for most folks, especially those like my son that live in perpetual debt. To them a raise means they can increase their credit card debt. >>
This^^ The majority of American people now days have been brainwashed with these rigged debt games that the bankers run. Most of our grandparents understood that you paid as you went and that you had to save money for hard times. Those days are long gone. Enjoy the cheaper gas prices for now. They will make up for those losses at our expense in the end.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match. >>
The old war mongers did toss those additional billions in the Omnibus bill to keep the war fires fully stoked.
<< <i>
We might save 35-40 per month but that won't change spending habits. Credit Union. >>
What kind of car do you drive ?
Hybrids
The other half has the bigger and less efficient hybrid. I'm saving maybe $7/month
<< <i>
<< <i>Those overextended when the tide changes pay the prices, it doesn't matter what the details are, if a business or portfolio can't withstand the perfect storm or "worst case" then it will suffer, relative to those betting the other way in that case, or covering more of the spots on the board, generally >>
That was generally true in the world of old, stuffy economics. Today the taxpayer eats the cost of greed, stupidity and general risk. >>
And true in the case where those making the derivatives models truly understand what the worst case scenario is.
If any of the big banker idiots had a clue we wouldn't have the phrase "too big to jail."
There are a great many items, of which their falling price would benefit most folks. Funny that some are pretended to be critical, and must be bailed out.
<< <i>If gasoline has declined by 1/3rd, then that means their average driver would have spent $3000/yr, or $250/month. I find it hard to believe the average person drops $250/month.... so households with man, wife, and a young driver drop $750/month on average? Sounds iffy to me. >>
15000 miles per year ÷ 25 miles per gallon is 600 per year. Price is down well over a buck in CA and going lower which will result in considerable savings.
Knowledge is the enemy of fear
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match which results in everyone losing.[/]
A Chinese bailout would not come without cost. Russia will lose its country. China now has the capability of building much more sophisticated weaponry then anything Russia could even dream about. China could use more land now since their is "dirty".
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Sees more carnage for oil into January. Interesting deflated oil price chart at end of article.
<< <i>China wins. It will become cozier with Moscow (who provides it with military hardware) and move closer to a Yuan global currency by providing bailout liquidity to Russia. The East/West divide is moving closer to a well defined line in the sand. A well defined line moves everyone closer to a shooting match which results in everyone losing.
A Chinese bailout would not come without cost. Russia will lose its country. China now has the capability of building much more sophisticated weaponry then anything Russia could even dream about. China could use more land now since their is "dirty". >>
Economic war has reached the point for new alliances. Russia knows this as does China.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
Liberty: Parent of Science & Industry
<< <i>Brent down to 53 again, WTI less than 50 >>
How low will it go and when will the rebound start? Couple of us have WTI in the game this year, so I vote for it going back to 90ish around Dec 31, ha!
Knowledge is the enemy of fear
Wouldn't the big losers be the ones on the other side of those contracts?
I wonder who they are and hope they won't be asking for bailouts, it must be a fortune of someones money. Articles say that Mexico and many fracking companies are covered well and some are taking the cash from their first line of hedges and going further out at lower prices.
<< <i>Oil wont go higher than 78 this year, and quite possibly no higher than 70--which would be a 38% retracement off todays low, which i think could be a short term low but maybe one more quick drop under 50 to take out the last of the stops. The break to 49.95 didnt quite take out enough of the "i cant take it anymore" traders. >>
...$49.15 this morning with predictions by "experts" calling $30-$35.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
so what makes that happen ?
LM-ANA3242-CSNS308-MSNS226-ICTA
so what makes that happen ?
$1.53?? I think the question is, what made it so low?
I'm paying around $2.70/gal, but of course do not live in an area of cheap gas
Liberty: Parent of Science & Industry
As other nations see their economies crumble will they bow to the US effort to reaffirm king dollar?
How long will US oil jobs (lots of them) and US exports be sacrificed to reaffirm dollar superiority?
At what point does the US pull the plug on oil price deflation and how?
At what point do US politicians feel the heat and say "enough?"
When does the currency race to the bottom resume in order to stimulate exports/jobs?
At the moment oil is the canary in the coal mine.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Liberty: Parent of Science & Industry
<< <i>Every gas station around here went from $1.53 up to $2.09 yesterday,
so what makes that happen ? >>
Where do you live? I'm paying $1.79 to $1.89 and we're near the bottom. $1.53 would be the lowest in the country I imagine.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor.
<< <i>Last check, oil is down to $47 and change.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor. >>
In late December 2008 crude oil plunged as low as $30.28 per barrel.
Link (scroll down to Dec. 2008) (Takes several seconds to load)
The time lag between the lowest crude oil prices and the lowest pump prices might explain the difference.
Also, there was quite a bit of economic turmoil during this time period, and many prices deviated from their fundamentals for a while.
My Adolph A. Weinman signature
Liberty: Parent of Science & Industry
<< <i>Last check, oil is down to $47 and change.
Strangely, the last time oil was this low was in 2009, and gas in my local area was $1.50 per gallon. This time though, it is $2.32 and the cheapest I can find is in the Hudson / Londonderry NH area at $2.23.
I agree with the poster stating that we get used to the higher prices. Very strange that with identical prices per barrel of oil, there is an .82c difference and not in the consumer's favor. >>
Lots of factors involved.
But right now in my town diesel ranges from $2.69 to $3.79.
Knowledge is the enemy of fear
Is $6.00/share off earnings in the S&P 500 a big deal?
I knew it would happen.
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal?
Knowledge is the enemy of fear
Liberty: Parent of Science & Industry
Gasoline $1.96 a gallon
Is that a big deal? What does a typical stock market correction run? 10% in a bull market? something like that. And PEs can go lower than 15X earnings, can't they? Maybe not for the S&P500, I haven't studied that lately.
After a stock market run like this one, I'd say that a 10% to 12% blowoff is almost insignificant, unless it's not just a blowoff. If it's a trend reversal, then it could very well correct 50%, right?
You should keep in mind that these are not normal times. We've never had a Fed so heavily involved in a balance sheet expansion of this magnitude or duration. I don't think that any one of us really knows what that means for the stock market in the long run.
Martin Armstrong seems to make more and more sense every day.
I knew it would happen.
100% Positive BST transactions
Those who shorted oil at $53 are winners (at least at the moment).
My Adolph A. Weinman signature
<< <i><< $53 OIL..........who wins, who loses >>
Those who shorted oil at $53 are winners (at least at the moment). >>
True. Unlike the other markets, at least oil is openly manipulated by a handful of players.
<< <i>
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal? >>
How much of the $118 will go up because of cheaper transportation costs? Could it fully offset the $6 loss?
<< <i>
<< <i>
<< <i> Oil at $50 a barrel could trim $6 a share off earnings in the S&P 500 Index this year, according to Savita Subramanian and Dan Suzuki, New York-based strategists at Bank of America Corp.
Is $6.00/share off earnings in the S&P 500 a big deal? >>
In any case, expected earnings for 2015 are/were about $124. The SP500 ended the year at about 19x earnings so this would compute to an anticipated price target of about 2350. Lets say earnings are reduced to 118 and keep the same multiple---year end 2015 target is 2240. But the PE multiple wont be at 19 if earnings drop, so lets say it goes to 15x---a big drop. This would putt he SP500 at 1770---or a 10-12% decline off the high. Is that a big deal? >>
How much of the $118 will go up because of cheaper transportation costs? Could it fully offset the $6 loss? >>
Its possible. Thats why I stated I would like to see the analysts computations.
Everyone trying to compare this oil drop to what happened in 2008 but there are very very few similarities.
Knowledge is the enemy of fear
<< <i>Well my oil stocks are down, But all my cars are big V8's so....... ;-D >>
You know what's funny? When gas was so high in 2011 and 2012, I'd say, "yeah, but my gold is going up too, so I'm hedged against high energy prices!!"
Now that gold and silver are down from their high prices, I get to say, "yeah, but at least I'm paying less for gas!!"
signed, Mr. Brightsidelooker
Liberty: Parent of Science & Industry
The cheaper oil gets and the longer it remains cheap will dictate new car demand. New cars have catalytic converters. Catalytic converters require palladium.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey