SPX was always destined to dip below 4000 because of how much of a bubble big tech was. As I said to a lot of people at the time, Microsoft was the only one close to real value, followed by Apple. Interestingly, both had their weights in the index upgraded lately. Amazon, Tesla, Facebook are all hideously overvalued and I don't talk about Google because I hate them too much to be impartial.
As for oil, it has traded below $70 when times are good, you can go back to a time where the future price was actually negative after the pandemic too.
I don't see how the price can fall when the demand is solid and the supply isn't rising. People aren't going to suddenly decide they don't need oil, no matter how much Citigroup wishes they could rush to their green catastrophe.
It's not just big tech that's in a bubble; but that's another topic.
I don't see how the price can fall when the demand is solid and the supply isn't rising.
In December 2019, you probably wouldn't have predicted a massive fall in demand in early 2020 but it happened. I'm not saying it will happen again, I'm saying you can't be sure it won't. Their "green catastrophe" is also better served by oil being expensive, not cheap.
SPX was always destined to dip below 4000 because of how much of a bubble big tech was. As I said to a lot of people at the time, Microsoft was the only one close to real value, followed by Apple. Interestingly, both had their weights in the index upgraded lately. Amazon, Tesla, Facebook are all hideously overvalued and I don't talk about Google because I hate them too much to be impartial.
As for oil, it has traded below $70 when times are good, you can go back to a time where the future price was actually negative after the pandemic too.
I don't see how the price can fall when the demand is solid and the supply isn't rising. People aren't going to suddenly decide they don't need oil, no matter how much Citigroup wishes they could rush to their green catastrophe.
It's not just big tech that's in a bubble; but that's another topic.
In December 2019, you probably wouldn't have predicted a massive fall in demand in early 2020 but it happened. I'm not saying it will happen again, I'm saying you can't be sure it won't. Their "green catastrophe" is also better served by oil being expensive, not cheap.
Have oil majors paid down their 2020 debts yet? Can they handle another crash in oil?
The green agenda is best served by oil companies going to the wall.