MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Oil Price and Travel Impacts on investments?

ronorono
in Off-Topic
Howdy campers,


Oil is right around $30 and with Iran coming online, it will probably stay under pressure. It still appears the Saud's plan to keep the squeeze on - as it's starting to really make an impact. We've all been watching Wyoming, Texas, Canada, etc. - not to mention other places around the world - Venezuela, Russia, etc. Their economic pain is starting to reverberate thru the macro economy.

Normally, transportation would benefit from cheap oil but at this point in geopolitical time, a lot of people are choosing not to travel, or modifying their destinations. You've had the middle eastern war(s), terrorist bombings willy-nilly lots of places, and now you have the Zika virus.

http://time.com/4202539/zika-virus-where-spread-countries-map/

This is going to really impact travel to South and Central America and the Caribbean.

What do you feel are the impacts we might have on our investments?

peace,

rono

Comments

  • catch22catch22
    @rono
    Will continue to stay away from Latin America. Have not been invested there for several years.
    Brazil with the Olympics = ouch !!! Crap floating in and on the water for open swimming competition and the Zika now, too. This doesn't even take into account the commodity hammer and the government corruption aspects. About 20 years ago, Brazil was starting to get its monetary act together..........that has reverted to the old ways........
    NOTE: crude oil futures are having a "divergent" today, in spite of over supply/storage report today and are currently traveling the opposite direction of equity sectors. The very good traders are making boatloads of money at this moment.
    Other than this, the markets are auto re-balancing our portfolio to a greater weighing in the bond side of life. ARGH !!!
    Take care,
    Catch
  • Joe
    I have been in the oil biz for decades and while that doesn't make me any better at predicting future oil prices than anyone else, what I do know is that a lot of energy companies right now are running on fumes and if oil prices don't move dramatically upward pretty soon there is going to be a huge batch of debt defaults and bankruptcies which will ripple through the economy.
  • Dex
    No effect. Oil down, dollar strong ... people from the USA will be traveling more.
    Strong Yen might send more Japanese to the USA.
  • catch22catch22
    edited February 2016
    @Dex
    You noted: Oil down, dollar strong ...

    Not at the time of this write........crude futures +5%, dollar a -1.4% and equity down.
    A divergent from recent patterns..............eh?
  • MarkMark
    edited February 2016
    No clue, but do be sure to ignore that guy who talks about MLP's. He's certifiable.
  • Dex
    catch22 said:

    @Dex
    You noted: Oil down, dollar strong ...

    Not at the time of this write........crude futures +5%, dollar a -1.4% and equity down.
    A divergent from recent patterns..............eh?

    u r killing me!
  • vkt
    @joe, are you talking about just fracking companies or broader? If the former, why do you think it will something more than a few states whose banks and oil-based economies would be in affected?
  • MarkMark
    I'm less than impressed by Barrons.com reporting but I'll let you decide.
    http://www.barrons.com/articles/ron-baron-the-stock-market-will-recover-1454436482

    - "Over the past year, low oil prices have cut into profits of energy companies and businesses that service them, which has impacted the markets. But we think these energy savings will soon begin to show themselves as consumers and energy-intensive businesses take these savings and deploy them elsewhere."

    Next to or followed by:
    http://www.barrons.com/articles/stocks-riskier-due-to-less-discretionary-spending-1454535560

    - "This has to be particularly disheartening to economists who believed that cheap gasoline was going to spur consumers to consume more. After all, money saved on gasoline is money that can be spent elsewhere. One look at the stock market and we have to conclude that did not happen as consumer stocks fell."

    It's hard to find good help thee days. I'm so confused.
Sign In or Register to comment.