The week that was…
At the risk of sounding repetitive Oil Markets are where the action is with everything else being white noise and tactical flim-flam. Always good to see a well known market phenomenon materialise in a market one is watching and so we witnessed the appearance over the past week of the infamous Dead Cat Bounce. For those of you not familiar with the term this refers to the fact that if you drop a cat from high enough up it will bounce when it hits the deck. However the bounce is, by virtue of the cat being dead, temporary and therefore the cat – or market if you exit the cat analogy – continues its downard direction of travel as though nothing had occurred. This happened with the oil markets at $50/bbl when it temporarily bounced back to $51.50 before continuing the headlong plunge into the forties.
The rest of the energy markets were correspondingly bearish as the entire complex dived on macroeconomics, global oversupply and mild winters. Given the disproportionate influence that energy company stocks have on various equities markets around the world all is not roses with dropping oil prices if your pension fund is overexposed to these stocks. Scotland should be relieved that it didn’t plough its own furrow given what’s happened. And finally, in a nod to all of our French friends, “Nous sommes Charlie”
This is just a snippet of our full report of the week that was. If you want the full report please email firstname.lastname@example.org.