Bull Trap?

[william the wie]

This is the sequel to my old bear trap thread of five years ago.

The US is running out of places to store oil. When it does run out of storage the oil price will drop and a lot of companies such as Berkshire that have bet the farm on higher oil prices as far as the eye can see will crash.

The indices are at or near all time highs.

The rest of the developed world is in even bigger trouble but in a panic you sell what you can sell not what you want to sell. That in turn means a dumping of US stocks. This will create a huge buying opportunity.

comments?

 

[Moonglow]

Russia can't afford to pay state employees

Russia can t afford to pay state employees - Business Insider

I believe we are seeing the end results already in weaker nations...

 

[deltex1]

I'm no expert...but we are 50% cash, 25% stock and 25% real estate...so I am thinking we will survive. Market more nervous about interest rates than oil methinks...

 

[Moonglow]

Inflation is already hitting Russia and Europe, and, the Euro slide to par value with the dollar...Somebody loosin' a lot of dough....

 

[Derideo_Te]

This is the sequel to my old bear trap thread of five years ago.

The US is running out of places to store oil. When it does run out of storage the oil price will drop and a lot of companies such as Berkshire that have bet the farm on higher oil prices as far as the eye can see will crash.

The indices are at or near all time highs.

The rest of the developed world is in even bigger trouble but in a panic you sell what you can sell not what you want to sell. That in turn means a dumping of US stocks. This will create a huge buying opportunity.

comments?

If the oil market crashes will it cause the stock market to crash too?

 

[william the wie]

This is the sequel to my old bear trap thread of five years ago.

The US is running out of places to store oil. When it does run out of storage the oil price will drop and a lot of companies such as Berkshire that have bet the farm on higher oil prices as far as the eye can see will crash.

The indices are at or near all time highs.

The rest of the developed world is in even bigger trouble but in a panic you sell what you can sell not what you want to sell. That in turn means a dumping of US stocks. This will create a huge buying opportunity.

comments?

If the oil market crashes will it cause the stock market to crash too?

Oh yeah. The dividends from the Seven Sisters, the royalty trust bubble, the interest paid by wildcatters from existing wells and pipeline revenues add up to a huge percentage of the cashflow in the capital markets.

 

[william the wie]

I'm no expert...but we are 50% cash, 25% stock and 25% real estate...so I am thinking we will survive. Market more nervous about interest rates than oil methinks...

Actually two sides of the same coin:

free cash flow is what is being discounted by the interest rate on the ten Treasury and oil is the immediate source of cash flow at the moment.

Smart phones are about halfway to being utility companies like WEC, Southern Company or anything with the name Edison in it.

Amazon and eBay are retail stocks the same as WalMart or Target

As with AT&T back in the 1800s right now the goal is to reach market saturation and then pay out dividends. The expected saturation date is 2018 last I heard. Other high-tech such as launch systems are currently being funded and sometime before the end of the century they will be the new railroad networks.
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