oil

File: wti.png (30KB, 1353x610px) Image search: [Google]

30KB, 1353x610px

When's the bottom? Why is this happening?

The S&P 500 has dipped again but recovered in the 1850 to 1900 area as it did in October 2014 and August 2015.

http://finance.yahoo.com/echarts?s=%5Egspc+interactive#{"range":"2y","allowChartStacking":true}

http://in.reuters.com/article/us-global-markets-idINKCN0UT018

shanghai composite
https://uk.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.SS;range=2y

I think most likely there is a general global economic slowdown at the end of a long bull market and in response to Yellen raising rates. A bubble popped in China in August and asian markets are still shaky but I think low risk investors knew the risks and didn't get entangled as they did with subprime mortgages. The breakup of an OPEC cartel would explain the following chart I am about to post but I am less certain about that. It could be because oil is now flowing freely out of arab spring countries like Libya which is a factor. I have also heard that Saudi Arabia is trying to kill Putin/fracking or the Chinese government is hiding an economic collapse which is unlikely.

If we take the lowest price in the 90s (10 the lowest, average 15) and adjust for inflation (+50%) we get 15 to 22.5 roughly which would be absolute rock bottom, but I don't think it will drop that far and I want to take advantage of this opportunity before it passes. Mainly buying shares in oil companies like statoil at firesale prices as opposed to quadruple leveraged oil futures, penny stocks and the like.

Thoughts? Suggestions?