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Woolfsmck

http://mobile.reuters.com/article/idUSKBN0LS0V520150224?irpc=932

I'm glad Europe pushed Syriza. These reforms are great and will help fix the long-term problems Greece has. Next to that they're trying to keep improving their competitiveness, keep privatizating, refrain from highering pensions and minimum wages to pre-crisis levels, spend less on the government itself and most importantly fight corruption and tax evasion.

The main thing is they recongnize the need to reform. Sounded like they didn't think they were screwing up before. So they are on the right path.
like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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The main thing is they recongnize the need to reform. Sounded like they didn't think they were screwing up before. So they are on the right path.

i know, the ignorance and failure was beyond belief :rip:

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  • 3 weeks later...

http://www.nu.nl/beurs/4012865/dijsselbloem-waarschuwt-bubbel-beurs.html

Dutch Finance Minister and president of the Eurogroup Jeroen Dijsselbloem has warned for a new bubble in shares. He says that the negative interest rate here and there could be problematic if it would go on for too long. He recommends people who have a mortgage above the house's value to pay off a part of the mortgage. He also suggests to keep some money on the bank, eventhough the interest rate is nearing 0%.

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http://www.nu.nl/beurs/4012865/dijsselbloem-waarschuwt-bubbel-beurs.html

Dutch Finance Minister and president of the Eurogroup Jeroen Dijsselbloem has warned for a new bubble in shares. He says that the negative interest rate here and there could be problematic if it would go on for too long. He recommends people who have a mortgage above the house's value to pay off a part of the mortgage. He also suggests to keep some money on the bank, eventhough the interest rate is nearing 0%.

​thats nothing new... when rates are really low fixed income (bonds, savings accounts, GICs) pay virtually nothing... that forces investors to put a higher percentage of their income into equities and stocks, even conservative low risk investors that normally wouldnt touch stocks and prefer lower risk fixed income find themselves tempted to go into stocks because theres no where else to invest

 

Gold is also a bad investment because its suppostu be a hedge against inflation or economic disaster. Inflation is virtually 0%, as for the economy, its stagnating but not collpasing or contracting in most Countries so theres nothing going for gold, at least yet

 

The result is stocks go up and up and up even though earnings of Corporations are not rising half as fast as their stocks are

 

I invest in stocks and i find it so difficult to find good value. Any good company with prospects for higher earnings have investors already having priced in future growth so you get stocks with 20X earnings or more. And companies with better and more normal trading multiples around 14X earnings or 15X earnings are all stagnant companies investors dont want

 

So yes, there is an equity bubble from 7 straight years of low interest rates :manicure:

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​thats nothing new... when rates are really low fixed income (bonds, savings accounts, GICs) pay virtually nothing... that forces investors to put a higher percentage of their income into equities and stocks, even conservative low risk investors that normally wouldnt touch stocks and prefer lower risk fixed income find themselves tempted to go into stocks because theres no where else to invest

 

Gold is also a bad investment because its suppostu be a hedge against inflation or economic disaster. Inflation is virtually 0%, as for the economy, its stagnating but not collpasing or contracting in most Countries so theres nothing going for gold, at least yet

 

The result is stocks go up and up and up even though earnings of Corporations are not rising half as fast as their stocks are

 

I invest in stocks and i find it so difficult to find good value. Any good company with prospects for higher earnings have investors already having priced in future growth so you get stocks with 20X earnings or more. And companies with better and more normal trading multiples around 14X earnings or 15X earnings are all stagnant companies investors dont want

 

So yes, there is an equity bubble from 7 straight years of low interest rates :manicure:

​I want to help my parents with investing. My father just invested a lot of money into Apple and Google and took away a lot from Unilever (:duck: the bubble is the largest in the technology sector), which is stupid. My mother wants to put money on a bank. I think that we should wait half a year at least till stocks are a bit higher, and go out just before the bubble. About 15% more could be made, which is 12 years of dividend tax in the Netherlands. Right now I think the only safe thing would be a bank, eventhough it's not lucrative at all. Investing in oil would also be bad, because oil prices might go down to even $20 considering there's a huge, huge oversupply to the point that the oil storages are almost full.

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​I want to help my parents with investing. My father just invested a lot of money into Apple and Google and took away a lot from Unilever (:duck: the bubble is the largest in the technology sector), which is stupid. My mother wants to put money on a bank. I think that we should wait half a year at least till stocks are a bit higher, and go out just before the bubble. About 15% more could be made, which is 12 years of dividend tax in the Netherlands. Right now I think the only safe thing would be a bank, eventhough it's not lucrative at all. Investing in oil would also be bad, because oil prices might go down to even $20 considering there's a huge, huge oversupply to the point that the oil storages are almost full.

​dont try to predict when the bubble will burst. bubles are very hard to predict... Also if the economic recovery is very gfradual and interest rates rise very gradually, there may be no shock to the stock market... u may get pretty big pull backs but not an actual collapse. Not all bubbles burst at once... some go through a gradual deflation or correction. It depends on so many factors its hard to say :shrug:

 

As for oil im actually investing in it... because current oil prices are too low for most companies to make a profit or expand operations which means this price cannot be sustained indefinitely

$20/barrel is a worst case scenario placed by some experts. In my view that will only happen if reduction in shale production takes longer than expected to take effect, if sanctions in Iran are in fact lifted (resulting in mroe oil exports from Iran) and if demand for oil remains subdued

 

Now oil dropping quite a bit further is a possible scenario but it would be very short lived. If oil did fall all the way to $20/barrel or even $30/barrel too much production would simply shut down and the supply vs demand imbalance would be corrected relatively quickly

 

What i did is i invested some money in larger oil companies (that wont go bankrupt even if downturn in prices last longer than expected). Its hard to pick out a bottom on any type of investment so im not looking to buy it at the exact lowest price. If it get it close to the bottom long term i will still make money

 

But i left some money on the sidelines... so if there is a much sharper drop, i can invest some more :yes:

 

Over-all these prices cant be sustained so i know within 1-3 years oil prices will rebound nicely... and since most stocks are over-valued, people will rush into energy stocks quicklly when theres a rebound since THERES NO WHERE ELSE TO INVEST!!!!

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Woolfsmck

horraaay  . ... economy peeps posting again.... *I was getting nervous*

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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horraaay  . ... economy peeps posting again.... *I was getting nervous*

​sorry, besides beign busy, my internet was getting stupid

 

Also i hate the new GGD layout which has kept me away :air:

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Woolfsmck

​sorry, besides beign busy, my internet was getting stupid

 

Also i hate the new GGD layout which has kept me away :air:

​The new layout seems to be meant for tablets and iOS .... the picures ect all scale much better on my iPad and it looks better ... It seems like a port for PC and much buggier.

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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​The new layout seems to be meant for tablets and iOS .... the picures ect all scale much better on my iPad and it looks better ... It seems like a port for PC and much buggier.

​it stinks tho... lines when u press enter decrease too much, it looks less formal, and emoticons sometimes fail to materialize and u gotta do it again

 

so annoying tbh :roll:

 

Even my thread looks smaller and less organized this way. i hate it!!!

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​dont try to predict when the bubble will burst. bubles are very hard to predict... Also if the economic recovery is very gfradual and interest rates rise very gradually, there may be no shock to the stock market... u may get pretty big pull backs but not an actual collapse. Not all bubbles burst at once... some go through a gradual deflation or correction. It depends on so many factors its hard to say :shrug:

 

As for oil im actually investing in it... because current oil prices are too low for most companies to make a profit or expand operations which means this price cannot be sustained indefinitely

$20/barrel is a worst case scenario placed by some experts. In my view that will only happen if reduction in shale production takes longer than expected to take effect, if sanctions in Iran are in fact lifted (resulting in mroe oil exports from Iran) and if demand for oil remains subdued

 

Now oil dropping quite a bit further is a possible scenario but it would be very short lived. If oil did fall all the way to $20/barrel or even $30/barrel too much production would simply shut down and the supply vs demand imbalance would be corrected relatively quickly

 

What i did is i invested some money in larger oil companies (that wont go bankrupt even if downturn in prices last longer than expected). Its hard to pick out a bottom on any type of investment so im not looking to buy it at the exact lowest price. If it get it close to the bottom long term i will still make money

 

But i left some money on the sidelines... so if there is a much sharper drop, i can invest some more :yes:

 

Over-all these prices cant be sustained so i know within 1-3 years oil prices will rebound nicely... and since most stocks are over-valued, people will rush into energy stocks quicklly when theres a rebound since THERES NO WHERE ELSE TO INVEST!!!!

​Like you already know, my parents don't want to invest in oil because they think it's not ecologically reponsible. But they won't get solar panels either :rip: 

Anyways... never invest all money or most of your money into one sector. You should try to spread it better...

And in my country oil prices barely even changed... went from 1.50€ to 1.30€ :rip: just because about 75% of the oil price is taxes.

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​Like you already know, my parents don't want to invest in oil because they think it's not ecologically reponsible. But they won't get solar panels either :rip: 

Anyways... never invest all money or most of your money into one sector. You should try to spread it better...

And in my country oil prices barely even changed... went from 1.50€ to 1.30€ :rip: just because about 75% of the oil price is taxes.

Well im not all in oil. Its where ive invested more heavily over the past month. I still have a lot in other sectors in different countries

 

i invested heavily especially in Canadian oil sands companies because due to their long cycle, low oil prices wont affect production unless low prices remain for a long time. The same cannot be said of US Shale making US companies more dangerous. Especially since most are newer and have more debt

 

As for gas, in the Toronto area it dropped from $1.30/litre all the way to around $0.93 at its lowest point. Its around $1.03 right now because of US refinery shutdowns cause by strikes and maintnance

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Well im not all in oil. Its where ive invested more heavily over the past month. I still have a lot in other sectors in different countries

 

i invested heavily especially in Canadian oil sands companies because due to their long cycle, low oil prices wont affect production unless low prices remain for a long time. The same cannot be said of US Shale making US companies more dangerous. Especially since most are newer and have more debt

 

As for gas, in the Toronto area it dropped from $1.30/litre all the way to around $0.93 at its lowest point. Its around $1.03 right now because of US refinery shutdowns cause by strikes and maintnance

​Ah. I'll just wait for oil to go down a little bit more, and then I'll probably invest in Royal Dutch Shell and maybe I'll also invest in a few Danish companies. The Swiss currency went up like 30% in one day, and that could also happen in Denmark.

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​Ah. I'll just wait for oil to go down a little bit more, and then I'll probably invest in Royal Dutch Shell and maybe I'll also invest in a few Danish companies. The Swiss currency went up like 30% in one day, and that could also happen in Denmark.

​does denmark have a currency peg also? the franc only rose super quickly because it ended a fixed peg to the Euro :shrug:

I invested some now... but since theres no garantee it will go lower, i bought some now, and if it falls further ill buy some more. even if it falls lower, over the long term what i payed for it will be relatively cheap

You should check out Canadas energy company "Suncor" btw. not telling u to buy it but search into it

It has one of the lowest operational costs in Canada able to make money on oil as low as $30/barrel on many of its projects. Its also the largest energy company in Canada with a good balance sheet and continues to expand operations... Its also big on refining so even if oil extraction isnt profitable, it has refining profits to fall back on

 

Lastly Canada (and Venezuela) has 1 advantage over every other Country on Earth. Oil Sands have a really long cycle. Takes years and BILLIONS of Dollars to set up a project. Its frustrating during boom times because growing production is such a slow process

 

However once a project is set up, the oil will pump out from each region for 20-50 years (depending on the project). So even if oil prices stay low for say 2-3 years it will not undermine a projects over-all profitability over its entire life span. And if companies dont have money to expand because of low oil prices, the projects they already set up will yield oil without declining for many years

 

In the US shale for instance as fast as it is to set up, within 2 years a field begins to decline in production and u gotta reinvest money to replace it with a new one. Even conventional oil fields peak within 10 years.

 

In Canada we dont have that issue, As long as it takes to develop the oil sands, once they are set up, your good for a long time. Dont have money to reinvest? no problem, you wont decline ur production for a long time :party:

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