Club Mulgoa

Friday, December 12, 2014

New World Order

Markets plunging everywhere.  But why would market plunge when the cost of energy is falling?  This is pure foolishness but how do you tell fund and institution managers?  Moreover, it is very expensive to look and extract oil from offshore sites.  The world has gotten used to oil at over USD$100 a barrel yet when it is below AUD$70 per barrel, it is causing silly market response.  I cannot see how this plunge can be sustained.  My problem is knowing when is the trough...

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