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What's The Biggest Loser Since Oil Prices Peaked?
Since oil prices peaked in June this year, there is one clear loser (according to the narrative) - Russia. Russian stocks have dropped 41% during that time and the entire Russian market capitalization is now only 60% of Apple! And while Greece's recent demise has it close to being the worst performer of the year, it's not quite. However, since oil peaked in June, both Russia's and Greece's epic demise is trumped by another stock market index...
Year-to-date, Russia is the biggest loser with Greece's recent demise catching down to it quickly...
With Russia's entire market cap now only 60% of that of Apple...
But since oil peaked, there is a clear loser... The US Oil E&P sector...
Still unequivocally good?
Charts: bloomberg
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Clearly the target.
"Still unequivocally good?"
Could we stop with that nonsense? Nobody is claiming the collapse in oil prices is universally or uniquivocally good. I'm probably about the biggest proponent of low energy costs on this board and even I'm not saying there won't be those who get hammered in all this. A little financial reality rearing it's head is LONG overdue in many areas of the market and the economy.
But for the average person that's a consumer of energy (most of whom hold no financial securities whatsoever), yeah, it's still a good thing. Funny how on the way up all the articles were about how oil companies and Wall St. were shafting average people, but now that the gears have been thrown in reverse, we're supposed to care about the oil companies and the banks that lent them money.
Not me, friend.
Noboby seems to mention that Canada will be hammered just as badly as Russia before this is over.
Terrible news for Russia as we all know that ever soaring stock prices are the sole indicator of a healthy national economy. /sarc
Actually this says more about whats wrong with overinvestment in Apple.
BTFD!
Jack in the Box at all time highs 40 PE.....Retail and burgers are screaming
Zerohedge: Unequivocally negative since 2009.
http://youtu.be/rHomETco0MI
Still waiting for Putin to drop multiple nuke warheads on USA.
"When Putin has nothing left to lose, he loses it"
We E&P'd some folks.
This whole oil tanky is cause by BRICS meeting the pricks. No petro dollar eh? Deep discounts for all of you. That will teach to negogiate side deals. It's me big banker's world and I'll destroy it before I let anyone else control it. It's just the way I do biz, if you haven't noticed
Time to start buying Russian ETF's....low price...the Russians aren't vanishing from the planet...this shit-show is a side show to to the big picture....
I'm with you Beetle. Russia represents a huge opportunity right now. Charts cannot tell the whole story. In the 90's, Russians surivived essentially without any money at all. The economy limped along on barter, patronage, mafia corruption, and subsidized (free) housing, food, and utilities. When Russia says it wants a parallel economy (non-dollar) it knows what it is talking about. The dollar is just a paradigm. Once you no longer believe in it, it no longer exists. Russia's gospel is, "We do not believe in the dollar."
If someone has a certain appetite for risk, and a lot of cognitive flexibility, an investment in Russia will pay handsomely, especially if you get in now.
"an investment in Russia will pay handsomely, especially if you get in now."
are you doing this McCormick? If so, how?
How to invest long in Russia now? With your brother-in-law's money!
Seriously, RUSS is now up 95% today. If you're short the Bear, you're in one hot money trade.
Goog luck.
How can you ever believe the ruskies can take on the world banker power? I wouldn't touch their shit, even with obola's tongue. THe world's currency will be the reserve currency til death do us part, or til the banksters want something diffferent. No fucking way they are going to let the brics decide the world currency. They'll start world war three first. IT's what the first two were really about.
"How can you ever believe the ruskies can take on the world banker power?"
The Germans were destroyed when they tried that in the 1930s.
Because they were not the world power. Did you think they were????
The world bankers first wanted a unified europe, and made a underestimation of who they were dealing with. They said oops, shit dude, my bad.
"How can you ever believe the ruskies can take on the world banker power?"
The Germans were destroyed when they tried that in the 1930s.
check your history, redmuff:
As emphasised by the economist Avinash Persaud, reserve currencies come and go. "International currencies in the past have included the Chinese Liangand Greek drachma, coined in the fifth century B.C., the silver punch-marked coins of fourth century India, the Roman denari, the Byzantine solidus and Islamicdinar of the middle-ages, the Venetian ducato of the Renaissance, the seventeenth century Dutch guilder and of course, more recently, sterling and the dollar.”[6]
As a country in decline (see the Roman Empire) the US Dollar will eventually not be the world's reserve currency - it was a great run, and the time is coming for it to end. World currencies seem to last about 200 years over the last 1000 years, and the dollar's time is about up. Looks like maybe the yuan's turn is coming, but who the hell knows, maybe a petro-bric new currency, whatever. The world banker power may do the deciding all right, or not, if WWIII gets in the way and the survivors get to start from scratch. First, they will shoot all the bankers, and new ones will arise...
...who the hell knows, maybe a petro-bric new currency, whatever. The world banker power may do the deciding all right, or not...
I suspect it will be an SDR carbon credit with a bit-coin flavor. The only way any sovereign nation's "gold" backed currency works is if their coinage / hoard is allowed to flow freely outside their geopolitical sphere of influence. It's a two-edged sword that Nixon discovered only accelerates a nation's decline when trust in leadership wanes.
just my pre-83 .02frns
It's not about the history of currency, it is the battle over control of the earth and all it's assets. Rome creamed themselves from the inside out. It has been planned for decades to create a global economy. The dollar is not just about the US. It's about who controls it, and if you want to replace it, you are gonna have to duke it out. China has huge skin in this game, but they can't take charge unless they kill a shitload of people for it.
Amerika plays by bankers rules. Obola has no real power. Putin appears to take charge and if they don't play by bank rules will be put in his place. China hates russians like the they hate the japs. Regardless, they all like money and will capitulate or suffer. THis oil plunge is only the first step in the exercise of power.
How in the fuck can you set a global government with no rules??? They have them, it's just the brics want to create their own, because they don't like playing the rigged game.
The bankers like using the dollar to control commerce for the global economy. THey let China get away with currency manipulation to a point, telling them to keep it internal to their economy. What we are doing is ripping our own guts out with debt. That's why we have morons in washington. Just like in Rome they take care of their own deals and not to the benefit of the commoners. Just ask your critter about globalization, oil prices, currency, banking, war, they'll "what yo talkin bout Willis".
But inshort, the bucky rules, for now at least.
I wouldn't touch anything that is financialized, including the Russian stock market. I'm not an insider, and if I were, I'd be out to fuck my fellow insiders. The game is rigged, until the wheels come off.
While the general idea is correct,
1. if your starting point is the US dollar, you're too early. There will be a much bigger run to come, into its perceived safety
2. Never buy ETFs for the long term (i.e. holding longer than a few days.) They have become just another class of instruments of guaranteed confiscation.
I'm confused HIgh Oil was Bad for Economy, Low Oil is Bad for Economy (SO ZH is telling us - but they make reference to speed of drop) but S&P still close to All time Highs. And yes I know S&P has nothing to do with state of the economy
The S&P has nothing to do with anything.
Not true. The S&P represents the oligarchs paying their high priced henchmen/henchwomen (and whatever Yellen and Lagarde are) to trample over the middleclass and the poor. It's like the Bat signal for the kleptocrats to untie and destroy the world. Or something.
Holy class war Chairwoman Yellen! The Kleptocrat Signal is shining! What do we do?
The same thing we do every night Lagarde. TRY TO FUCK OVER THE WORLD!!!
Up arrow for "and whatever Yellen and Lagarde are..."
Oh - ouch!
Actually, Yellen looks like a dear old dumpy Aunt from Minnesota, but Lagarde seems to be related very directly to a reptile I would never want to meet unless I was very heavily armed.
Rapid change like this, essentially chaos, is bad for the economy.
High oil means that consumers cannot afford to consume in a consumer economy. Low oil prices mean that producers cannot afford to produce in a consumer economy. It's a catch-22. The costs of production and the level that is affordable are pulling away from each other.
Jay Carney must have made a fortune on this trade.
A: Humans.
The world no longer runs on oil. It now runs on Facebook ads.
Are those ads carbon neutral? What's the cafe rating for a pickup running on Farmville ads?
Theme song on Wall Street and in Central Banks today:
https://www.youtube.com/watch?v=Yr-Z8yudQ6w
Maybe the Federal Government needs to nationalize the industry?
Maybe forced deflation before the GREAT INFLATION!!!!!!!!
The big banker creed: I'd rather break my toys than share."
If Putin proposed to use gold to back the ruble, I suspect the Chinese and others will be a lot receptive to direct currency trade in yuan and ruble.
they are already doing bilateral energy trade in the Yuan/Rouble/Gold. Remember recently all European customers need to pay for Gazprom gas in Rouble/Euros and not the USD. China pays in Yuan as well as Treasuries which get dumped immediately for either gold or some other kind of hard asset. Don't forget how they are financing the BRICS development bank, AIIB etc. US Treasury send back to sender!
Too damn bad they didn't include CHK in the PXE today. That dead cat bitchez is on FIYA!
Still good.
As much as I dislike participating in the casino market - I had to nibble on both oil services and Russian stocks. Oil is being manipulated just like gold and silver - so I am willing to take the bet that oil will be back to $80 by next spring making both of these winners.
You don't get your big Goldman bonus trying to push an all-time high market 5% higher. Nor trying to push PMs a few percent lower-er. So its time for them to short a few sectors down hard and ride them back up again.
HES looks somewhat interesting.
Oil, the largest and most liquid (no pun intended) market on earth has been manipulated for years by the supply side cartel OPEC and demand side cartel Global USD banksters. The market has changed recently to a buyers market which put strains on the solidarity of the Cartels... Who knows perhaps the market price will keep dropping... forcing production cuts and or bankruptcies which will destroy the monopolies or forcing the adoption of a more stable pricing mechanism.
One thing is reasonably certain... it will be years before we see 100$ (in current dollars) barrel oil again.
One thing is reasonably certain... it will be years before we see 100$ (in current dollars) barrel oil again.
Hell, I'll take that bet.
Me too, what odds he givin'?
Keep in mind current dollar equivalent. Goosing up various forms of monetary inflation (like Japan) to "inflate" the USD price... doesn't count...
This is all happening because some Saudi said, "We're gonna print more oil."
If, today or tomorrow, that Saudi says, "We're gonna stop printing oil,"
...
Presto.
The supply side is no longer in control, due to overproduction coinciding with global growth slowdown. OPEC was profiteering through their monopoly on supply and must now squeeze out the high cost producers to retain market share...however long that takes.
So this is, you think, nothing more than the Saudis knocking out some competition?
First, won't they all just reappear once oil creeps back to $80 or $100 a barrel?
Second, seems awfully messy. Like using a hand grenade for a mosquito or something.
Might there not be something else at play? Might this somehow be a prelude for a shift from the U.S. to the BRIC economies? I mean, I'd have my children studying Russian in school (or Chinese, maybe) instead of Spanish or French, thinking of the future.
Thats not what I think...I think a free market in oil has broken out from decades of supply side control.
Catching a falling knife.
The American People
Russia's stock market has more to do with Obongo not understanding he is starting a trade war and possibly WW3 than oil.
AAPL market cap ? Lulz. Those overinflated stock by endless QE from the FED and then Japan ?
I wonder how much all those shit would worth in pure non manipulated market, you know without QE and with high interest rate at the CB ?
anybody have any info on this Turmoil company they seem to be into everything...everywhere...
Does the Russian market exceed the 2008-2009 bottom this month ... or next? Any way you look at it that's some serious hurt and far from over. The global slide is only just beginning, gradually following down the last 4 years of Macro sliding to negative.
Very slow in = Very slow out.
Isen't there a TV show called "The biggest loser"? About weight lose, I think.
Maybe they should change the format to financial.
See Russia, that's what you get when you don't go along to get along.
Yeah? Well Apple doesn't have nukes . . . Google maybe.
There is no question this is about punishing Russia and Putin for non-cooperation. Russia is heavily dependent on oil prices. And then you have the "energy body" and the IEA piling on saying, "we didn't see this (the drop in oil prices/consumption) coming." Who is fooling whom? The International Banking Cartel will try to take down anyone, anything, any country, leadership, etc. that does not play by their rules. Zbigniew Brzezinski spelled it out in The Grand Chessboard. The Saudis and OPEC take direction from the IBC.