Will the sell off continue??

Posted: August 11, 2011 in Uncategorized
Tags: , , , , , ,

Since Last week to this week it seems as ever single market has been hit, and hit bad with this major sell off. Most of the reason being blamed on the fact that S & P downgraded the United States from a AAA to an AA+. (Can someone explain in reality what the heck the difference is??, because to me 2 A’s is obviously better than 1 A, and 3 Better than 2 A’s However being AA+ does not mean the world is going to come to a end. As of late the Market has been getting crushed with pathetic news. Most of the time I see some of these articles, and I am like how can that even be 100% legit. (What I am retorting to is that their is bullshit articles printed daily to stir up things.) Anyways sorry to get off of subject.

Sell off Will Continue

Personally the sell off to me is not even close to being completely over. I figure by the end of October and as we head into the winter months is when the markets could see their worsts.My reasons on feeling this way are simple, once Q3 comes it is for sure that there will be negative numbers in the Job Growth area, and this could continue all the way threw January. Oil ,and Gas are another KEY factor in the economy, and could have huge effects on the Market.

Oil Will Rise

I firmly believe there is two theories of which can happen with oil.

Oil will rise if there is a huge increase in the demand for it.

Oil will continue to rise weather we lay off the pump or not, because the increase in demand for Oil is still there.(Let me Explain)

See the fact that gas/oil are Natural Resources is what makes it such a pickle. Not to mention the fact that the world was so reluctant to find other alternatives 50 years ago has a burden on us. No matter what we do, regardless if 200 million USA drivers lets say drivers cut there driving by 5,000 miles a year. With an AVG of 20 Miles a gallon @ $4.00 a gallon

In a year that would be around 250 gallons a person *  $4.00 a gallon = $1,000.00 a year * 200 Million = $200,000,000,000 in savings just in the USA.

However lets say even with us cutting at the pump

Other European, and Third world countries continue to develop,prosper and use Oil.

Lets just make up a number here and say that this year there will be 100 million new drivers in these 3 rd world countries. From this lets say Each driver used 500 Gallons, and from the countries developing trucking because more dependent and 10 million new drivers hit the road to delivery food, and goods to the prospering cities. These trucks use 4000 gallons a year on gas. With all this at $4.00 a gallon this would be

500 Gallons * $4.00 =  $2,000.00 a person * 100 Million new drivers = $200,000,000,000 in Oil

4000 Gallons * $4.00= 16000 Gallons * 10 Million =$160,000,000,000

In the end regardless if we try to conserve Oil & Gas or not the world consumption will continue to rise, and we will continue to get lower and lower, on are Natural Resources of this Oil Demand, and in the end the price will Climb the ladder.

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