It may or may not be a year, but if you are in for the long haul, you'll look smart. Oil has long cycles.
The problem with these prices are they aren't sustainable. Too many producers will be under production costs, at which point what is the point of producing?
Yes it is oversold, but no reason to be a hero. Oil still has major issues and the price needs to rally significantly. I would still be very cautious.
What issues does oil have? I am not trader I have no interest in trying to predict what is going to happen tomorrow or in 2 months. However I do know at this price too many companies/countries are not going to make money or even cover production costs.
By issues I mean the demand from China and the huge amount of supply we have and can easily tap. There will be ups and downs with the price but I don't see a sustained rally above $40 or anything. Maybe later this year we will have a bottleneck in production with all the cutbacks that are going on, but we also have a titanic amount of oil that is being stored and is ready to be tapped at any point. Also, there are too many oil companies with far too much debt that they took on to buy properties that are now pretty close to worthless for them to drill. Maybe when we see a few bankruptcies then it will be a better time to buy or at least when the stocks quit making new lows. What oil stocks did you pick up? It really varies wildly from company to company. I don't think today is the worst time to pick up some oil stocks, but for me it would just be a trade.
I'm shocked, shocked the stock market is tanking after Yellen raised interest rates. She/Bernanke inflated this bubble, the pop was inevitable. She pretends not to look at stock market, but how long before negative rates and QE4?
The market isn't tanking because of the 25 basis point hike. The dollar is basically unchanged and treasuries have rallied/yields have dropped since the hike. You should look at the numbers rather than just saying stuff that suits your narrative. Sorry to sound rude, but it really adds nothing to the conversation when people bring up points and issues that aren't based in reality. QE4 and negative rates are not happening and there was never any bubble. ......but it's not like anything I say will change your point of view.
Below their ipo price? hell no. I guess what I meant was their stock price should be down at least 4%.
Apple has already been hit for like 30% before this bear market got started. It's even gone from being a growth stock to value stock with a PE of 10. Also, it's earnings estimate has been lowered giving it a lower bar to jump over. It's iPhone sales may be down, but at this point it's downside is limited.
It will happen, especially with an election coming. Or at the very least, a rate drop back to zero. Yellen will need to wait for a bad jobs report for cover, can't appear to be a reaction to stock market.
Huge difference between negative rates/QE4 and cutting a quarter point. Don't hold your breath for a quarter point cut though. The Fed has called its shot and will likely continue to hike rates slowly. Don't fight the Fed.
