The oil economy is 8% of your total economy.
The boom in US production has made America the largest oil producer in the world and radically changed the economics from when it was a net consumer. It also means this latest oil price plunge will be far more damaging to the US economy than the massive oil price drops in 2008 or 1991.
Early Monday, Morgan Stanley put out an estimate saying if oil prices remain at low levels, it could shave 0.15 to 0.35 percentage points off of US gross domestic product in the first quarter. Morgan Stanley also said it is concerned that consumers won’t spend any of the savings from lower gas prices.
According to FoxNews (when a democrat is president) low gas prices are bad for the economy ldo.
Depends how you look at it. I mean obviously I’m not saying “Drill, baby, drill,” given the environmental impact and all, but OPEC can mess with us either way. We use a ton of oil, so either a big chunk of our economy will be based on getting oil out of the ground and into gas tanks and we’re vulnerable to what’s happening now, or we’ll be consumers with no real options outside OPEC and screwed if prices go too high because they feel like messing with us.
I don’t know enough to know which is better.
What did donny dipshit promise the markets this time?
Lots of free money. I don’t think anyone cares about that though. Markets are going to bounce off all the idiot dip buyers. Fundamentals haven’t changed. We’re still not doing anything to stop the covid spread and we’re about 1-2 weeks behind turning into Italy.
1 Like
This motherfucker is going to be dictator in like 15-20 years after Don Jr and Ivanka get their turns.
Have they even stated what the dramatic and major measures they’re going to take are? As far as I know, Trump just talked out of his ass at the press conference and that was it.
We’re going to see massive volatility but I agree with you that the fundamentals haven’t changed.
My ETF savings plan went from +20% few weeks ago to -7% yesterday. All money I can easily spare but I am planning on reloading my brokerage account with extra cash today and put in an unscheduled buy. The question is to figure out the right time. The whole time I was waiting until the indexes corrected themselves a little.
FWIW, countries that have basically no oil-industry are seeing similar developments, so I don‘t think that has much to do with the current development. More likely some combination of general panic/ fear of recession
Great time for more puts
Futures up 5%, what a world.
Kinda expected the day after the biggest point loss ever right?
1 Like
No? This is my point. Nobody knows anything yet after every major move hordes of people come out of the woodwork proclaiming recent market moves “obvious” or “expected.”
2 Likes
Just like how 90% of people I know sold everything three weeks ago because it was obvious.
Historically it’s more likely than not, ie kind of expected
Exactly why timing the market is pure gambling.
1 Like
Iirc you’ve said this multiple times itt despite the fact that literally nobody disagrees with you
You just said it was obvious there would be a bounce back today.