While the it is always debatable whether or not a borrower can purchase a home in their city, I find the below map, published along with an accompanying article by the Washington Post, to be very interesting.
Fortunes have been made and lost (see Harrold Hamm’s billion dollar divorce) during the last 90-120 days with the wild swing and mostly downward spiral of oil prices around the world.
The overall consensus is that the world suddenly has an oversupply of cheap oil. Additionally, prices are being artificially depressed by the middle eastern oil producers as they flex their muscles in the face of US Shale producers.
I dare to ask, how did this price drop happen so quickly? Did the oversupply materialize overnight? Can the middle eastern nations really keep depressed prices much longer or can we assume some excessive declines as a result of heavy shorting of the oil trade?
Of course the answer is a combination of the above factors along with a heavy amount of speculative trades. He who picks the right side of the trade (I did not!) will undoubtedly make a fortune.
The reality is that oil stocks have suddenly become the “IT” commodity in the very same manner that tech stocks were the darling of the mid 90s. The daily percentage fluctuations in prices have become so pronounced (see GDP) that the underlying factors have become secondary to the value of the trades.
I have no doubts that oil prices will rebound. Wall street seems to be betting on a rebound as well, with calls from Goldman Sacks and other investment houses emphasizing the position.
I believe it fair to assume a rebound within the next 6-9 months for the following reasons:
For my side, I am confident (my personal opinion only) that we are currently trading at or near the bottom of the range for the foreseeable future and just like the tech stocks of the mid 90s, this trade offers great risk/reward potential.
Enjoy the lower gas prices and best of luck with your investments!
I recently came across a MarketWatch article called “Make your kid rich for $1 a day”.
Written by Paul A. Merriman (@SavvyInvestorPM), the article addressed every parent’s question: How do I ensure that my child has a financially secure future?
While every parent knows that it must be done, actually saving for your kids’ future is much easier said than done. Most of us live on a tight budget and are barely able to save enough for our own retirement. Adding another savings account to the mix often sounds much too overwhelming and frankly out of reach. Juggling credit cards bills, utility bills, grocery bills and in most cases, a mortgage is enough to break even the most committed parent!
But what about $1.00?
Ask yourself: Can you spare $1.00 per day in exchange for your child’s financial security?
I think a good number of us would agree that it is feasible or at the very least a goal within our reach.
I, for one, am committed to providing my kids with the best chance at a secure, independent future and will take this article to heart.
The article is absolutely worth the read:
Happy Trading .
We’ve all thought of it. We’ve all wished we could do it. Just round up every purchase to the nearest dollar and put that money away for savings. Do away with all the spare change and skip the cumbersome penny jars!
As expected, market volatility is now the name of the game. This volatility will most likely continue for the foreseeable future.