Do you have 33:34 minutes to spare?
I’d like you to consider watching a market update in video form from Liz Ann Sonders, Senior Vice President and Chief Investment Strategist of Charles Schwab & Co., Inc. Ms. Sonders builds a case for oil topping out.
The video covers a number of topics which I’ll offer a partial list:
* Growing Risk of Global Recession
* Inflation Risks
* Dollar’s Slide
* Debate on Speculators in Oil
* “Breaking Point” of Oil (perhaps the most interesting bit of data in this presentation, my opinion only)
* Demand Destruction, How we are driving less because of energy prices
* 1985-1986 Oil Price Crash
* 1997-1998 Oil Price Crash (yes oil does go down, sometimes!)
TO WATCH THE VIDEO, CLICK HERE
(you can fast forward and/or rewind as well)
A few charts from the video.
(click chart to enlarge)
The chart above reflects how oil peaked, as a percent of GDP, in previous cycles. Using the same methodologies, perhaps oil could reach $167 per barrel before peaking in this cycle. Keyword: perhaps
(click chart to enlarge)
The chart above reflects ‘demand destruction’. That is to say, when the price of something goes up too much, demand for such item falls, hence our driving less at over $4.00 per gallon for gasoline.
(click chart to enlarge)
The chart above is to make you feel better about your gasoline purchases…Ok, maybe I should not be so glib; but it does reflect the bitter reality of energy prices elsewhere in the world.
That’s it for now. Thanks for reading.
Dave G
