Morning Report Tuesday 19 January 2016
Again looking closely at one of the market "keys" - oil.
The questions Market Matters have received over recent weeks have been dominated by the oil theme; so, with the US closed for Martin Luther King Day it feels like an ideal time to recap our thoughts.
Unfortunately history tells us that questions flood in when investors are losing money as opposed to making money and considering where to take profits.
Everybody that reads a newspaper is likely to know that oil prices have literally " fallen off a cliff " falling over 70% in the last 18 months - see chart 2.
Crude oil is rapidly approaching its major support of the last 25 years and Market Matters agrees with the recent Goldman Sachs research that Crude Oi will experience a bull market in 2016 i.e. a 20+% advance to back over $US40 a barrel - see chart 1.
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