Panic in the Oil Pits?
By: Tim McPartland,
We are looking at the pricing on crude oil and wondering who is doing the massive liquidations of positions. Crude is off over 4% today as longs head for the hills. All we can say is let’s get the selling out of the way so we can stabilize. Some may have noticed that we started to tiptoe back into the oil patch with the 2015 Model Portfolio – Blended Income – we thought we were likely early so we kept the positions small–not much pain is likely from these tiny positions.
The balance of the equity markets are getting creamed again today. There is little doubt in our mind that all of 2015 will present a challenge to stocks as the global economy lays an egg. Isn’t it amazing how we all watch the 10 year treasury go nowhere all of 2014–in an obvious sign of global weakness, but the mainstream press ignores it and plays up that Yellen is going to raise rates continually–then a switch is flipped and they damned near panic. Professionals? Certainly the internet brings out the real investing intelligence–and it ain’t found on Wall Street.
For those with large worries over the market we encourage further study of our 2014/2015 Short/Medium Duration Income Model. It just keep chuggin along at a nice 6.67% current yield with little day to day movement in net asset value.