The price of oil fell through $60 a barrel last week and has now fallen over 40% since July. This essay is a follow up to the audio lesson on oil I released last week. This drop in the oil price is an excellent example of how markets are “clumpy” in that large moves are often compressed in to short periods of time. They cluster. This oil price decline is a classic extreme event as falling prices, prompt more selling and more falling prices. There is definitely an element of panic as the … [Read more...]
What Is Going On With Oil Prices?
In this audio lesson, I discuss the longer-term investment implications of the decline in oil prices in particular and commodities in general. In the lesson, I share: Does the drop in oil prices mean we are heading toward a recession? What is a commodity supercycle and is the current one ending. What is driving the oil price decline. How do longer term commodity trends impact stock prices. What is the impact of oil prices on Master Limited Partnerships (MLPs) The episode … [Read more...]