1 Dec 2014
First peak oil and now low prices forever? - BBH
FXStreet (Guatemala) - The dramatic decline in oil prices is a major surprise this year.
Key Quotes:
“It ranks up there with the decline in US Treasury yields as major stories the consensus failed to see. Medium term investors need to be particularly wary of dramatic swings in consensus”.
“Before it was peak oil, and now it is prices will stay low forever. The race to the bottom is analysts tripping over themselves to see who can project the lowest price”.
“In any event, the drop in oil prices has become the latest fodder for arguments over sovereign bond purchases”.
“Another dramatic swing in the consensus view is that sovereign bond purchases have done little good for the real economy even though it boosts equity markets to now it is inevitable that the ECB launches its own program shortly”.
Key Quotes:
“It ranks up there with the decline in US Treasury yields as major stories the consensus failed to see. Medium term investors need to be particularly wary of dramatic swings in consensus”.
“Before it was peak oil, and now it is prices will stay low forever. The race to the bottom is analysts tripping over themselves to see who can project the lowest price”.
“In any event, the drop in oil prices has become the latest fodder for arguments over sovereign bond purchases”.
“Another dramatic swing in the consensus view is that sovereign bond purchases have done little good for the real economy even though it boosts equity markets to now it is inevitable that the ECB launches its own program shortly”.