THE VIDEO - Oil Crash of 2014 (... and stocks are next): Why It's Happening and How to Trade
1. Oil crash coincided with the introduction of economic sanctions against Russia
2. 80% of shale oil production in the US economically unviable at $60 per barrel
3. The impact of the crash in oil is impacting high yield credit markets and the financial markets of major oil exporting countries, like Russia and Nigeria
4. Is this part of a political war to weaken Iran and Russia and their allies?
5. In terms of trading strategies one could speculate that this is a cold war that will lead to hot war, that oil will rebound after bottoming (my personal favorite), or that deflation is happening and that the US dollar and US Treasury bonds will continue to benefit.
read more - The Fed caused the oil crash, and stocks are next:
Oil's swift and sudden decline is just the latest Federal Reserve-induced bubble to pop, and if history is any indication, stocks and real estate could soon follow, according to Euro Pacific Capital's Peter Schiff.
"If oil prices are artificially inflated by the Fed, so are stock prices and real estate prices," he told CNBC.com's Futures Now.
"Look, oil prices fell from $150 per barrel to $32 a barrel in 2008;
that helped the consumer too, but it didn't stop the financial crisis,"
he said. "The same thing is happening now, and you are whistling past
the graveyard if you think what's happening is good news."
"I know [the Fed] can't raise rates or they'd bring about the worst
financial crisis since 2008," said Schiff. "I don't know when they are
going to tip their hats but they are going to have to come clean about
launching QE4. Because if they don't do it, they are going to have a
worst financial crisis than we saw in 2009."
