Friday, December 19, 2014

Stocks Surge but Oil turmoil? Hmmm.... 1 - 1 = 3?

I beg to differ.

  • NAIMI SAYS DEMAND FOR OIL SLOWED MORE THAN EXPECTED: SPA 
  • NAIMI SAYS GLOBAL ECONOMY SLOWDOWN LARGELY BEHIND MKT PROBLEM

Hmmm... so who is this NAIMI fellow?

Saudi Arabia's Minister of Petroleum and Mineral Resources. Check wiki if you don't believe me.


Demand is dropping in my opinion as I have mentioned before. I don't doubt there is oversupply, especially coming from the Americans through the shale oil, but I don't think demand is strong as well.


I mean, is my basis of logic too rudimentary or simple? World growth down, demand for oil is down. Really, that's kind about it.

So, here comes the confusing part: Is lower oil good for the economy?

However, I think we can all agree that by now we have come to the same conclusion about what to do in various situation.

What should we do when we see...

Bad Macro data?
Credit spread widening?
VIX divergence?
Oil dump?
Currency carry unwind?
Inflation expectations lower?

Whatever the question is, we now know the answer. Buy Stocks. The answer is always, buy stocks.

/sarc

3 comments:

  1. https://www.youtube.com/watch?v=0akBdQa55b4

    here, watch this take on buying stocks. "just buy the fucking dip."

    ReplyDelete
    Replies
    1. HAHA, I've always found that video damn funny. But so true the past few years.

      One of these days the dip won't get bought, but with good position management and sizing, that 1 loss should be hardly anything compared to all the previous wins!

      Delete

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