DOW falls 500
Oil futures are down to $ 27 a barrel and everyone is freaking out.
The markets are stupid and dominated by lemmings.
The more people on the markets the worse the lemming effect.
This absurd roller-coaster is definitely part of the down side of capitalism.
Update, 01212016.
An explanation, of sorts.
Cheap oil, good for consumers, is slamming stocks. Why?
Think of the market as a not very bright trained rat.
Cheap oil is a sell signal because generally oil is cheap because of contraction.
But there is no contraction, just a bit of slowed growth in China.
Oil companies apart, the US economy is doing fine with almost 6 % profits.
Oil is cheap right now owing to decisions of various producers to continue production despite low prices.
All the same, oil is cheap.
Ooooooo. Scary.
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