There was a lot of fear that the markets would tank tomorrow because of Venezuela. People were thinking there would be a major sell off. So how best to position. Maybe it would be a buy the dip situation again. But oil, bonds and markets so far are reacting, or more accurately not reacting, like nothing happened. All is calm.
The futures are open and it looks like Venezuela doesn't matter.
byu/fallingdowndizzyvr ininvesting
Posted by fallingdowndizzyvr
13 Comments
Their oil production was already down, so it won’t matter hardly to the world’s oil. Forbes has a piece on the heavy crude perhaps going to the U.S. instead of China, .. and maybe those implications. Remember oil stocks are only ~ 2% of the S&P 500 though. Getting more heavy crude in the future will help refineries in general, but remember oil is a global commodity ultimately.
Probably good for weapons manufacturers long term.
In fact, volatility dropped in /CL
What’s there to react to? So Trump kidnapped Maduro and bombed some kids. The Venezuelan government still owns the oil of Venezuela. The chain of command is still completely intact. American companies don’t suddenly own the oil.
Trump’s throwing a temper tantrum to get people to stop talking about his pedophelia.
It’s a combination of Venezuela not mattering very much in a global context, and nobody knowing what will happen. Venezuela’s oil production has heavily degraded after decades of mismanagement so there’s not much supply left to lose and it’s not near any major geographical chokepoints. It’s long locked itself out of global financial markets. Trump doesn’t seem to have a clear plan for how to proceed. There’s just not much for macro to trade on here.
OP people ALWAYS think there’s about to be a major sell off
Calls
Priced in.
Are the “people” in the room with us?
Are you new here ? Calls it is
If this happened on a weekday, I do think the stock market would’ve been jittery for a day or so — because everyone was in the dark on the details.
So yeah, +1 to what you and everyone else are saying.
My XOM buy 2 Summers ago: prescient.
Gold is up 2%.
Look at CVX, COP vs CNQ and SU.