When a magician is performing......
he wants YOU to keep an eye on what he wants you to see. He tries to draw your attention away from what he
DOESN'T want you to see. The same holds true for "con men" (right Donnie) and investment banks (same thing:).
One of the things you need to keep your eyes on
THIS YEAR.....
is oil and gas. It is
DEEPLY imbedded in the issues of Trump's presidency, his cabinet, Russia, etc. In fact
BOTH fossil fuels.......AND.....
investment banks are deep into Donnies pockets.
I think Russia, Saudi Arabia, and many large oil and gas companies have
BADLY (Bigly
) misplayed their hands. Saudi Arabia will be doing an IPO of Saudi Aramco this year....and "secondary issues" in subsequent years....to try to get "value" for their oil and gas holdings before they end up with
"stranded assets" (assets that will become worthless as renewables continue to drop in price and make it uneconomical to drill for oil and gas).
That is the whole backdrop to Trump's cabinet.......especially Rex Tillerson.....and his relationship with Russia.
I expect oil prices....especially of large O&G companies like Exxon.....to deteriorate further
THIS YEAR. They will likely find an "intermediate term bottom"
sometime this year....and maybe get a good bounce for a year or two. But they already started their
LONG TERM downturn in 2014.....and they have a
LONG AND WINDING ROAD DOWN ahead of them in the coming decade or two.
You're also going to see renewables....instead of trading in the "same direction" as oil and gas....you will see them push higher. This is going to create some
REAL PROBLEMS for some of the Mideast countries.....as well as for Russia.....and large oil and gas companies (Rex got out just in time). The Mideast countries as well as some northern African countries now realize that the world is moving QUICKLY away from oil and gas.....and to renewables. But Saudi Arabia has ALL THAT OIL which will not be used to burn for much longer. There WILL BE uses for it....but not for internal combustion engines. And even the cutbacks that OPEC has made are not going to be enough to stem the downturn in oil price at least for most of this year.
But Russia and the oil and gas players will NOT go down without a fight. And now they have someone unethical enough like Tillerson to help fight for them at least over the next year or two until the only people lobbying for oil and gas will be Joe Bastardi, Sean Hannity, and FOX News.
The "investment bank magicians" will have their hands full this year trying to sell investors on the long term value of Saudi Aramco. And the Trump cabinet will be working with Russia and others to try and prop up the price of oil.
This is just starting to get fun........
KEEP YOUR EYES OPEN.....AS WELL AS YOUR MIND.