I hadn't really appreciated the negative oil price impact on investing in future production. China of course has kept the lockdown scares a recent memory, and until that risk falls that's another reason to keep expecting strong performance from energy plays.
This is a theme time immemorial in the stock market. A great recent example was the ocean freight companies. After years of neglect and the absence of investment, many companies went under. They stopped the development and purchasing of new boats. After a few years of consolidation, shipping rates slowly began to rise. I'm confident if we hadn't experienced the COVID shutdowns, shipping companies would have been the place to be. We got a glimpse of this with their high dividends and quick run-up. Unfortunately with a recession coming, shipping companies will struggle. Keep a close eye on them though, they've been setup for future success.
Is the credit card debt really an increase? Surely not yet. Adjusted for inflation current credit card debt is not much different from Q4 2019 so I don't think this is evidence yet of a collapse in disposable income (although I do think thats coming). I remember, although this is for the UK, realising in 2007 that many young coworkers were carrying 30K USD equivalent on their credit cards and thinking nothing of it.
The debt is not a new all-time high. Many Americans spent their COVID handouts paying down their credit card debt. However revolving consumer debt is quickly getting close to setting a new high.
I hadn't really appreciated the negative oil price impact on investing in future production. China of course has kept the lockdown scares a recent memory, and until that risk falls that's another reason to keep expecting strong performance from energy plays.
This is a theme time immemorial in the stock market. A great recent example was the ocean freight companies. After years of neglect and the absence of investment, many companies went under. They stopped the development and purchasing of new boats. After a few years of consolidation, shipping rates slowly began to rise. I'm confident if we hadn't experienced the COVID shutdowns, shipping companies would have been the place to be. We got a glimpse of this with their high dividends and quick run-up. Unfortunately with a recession coming, shipping companies will struggle. Keep a close eye on them though, they've been setup for future success.
Is the credit card debt really an increase? Surely not yet. Adjusted for inflation current credit card debt is not much different from Q4 2019 so I don't think this is evidence yet of a collapse in disposable income (although I do think thats coming). I remember, although this is for the UK, realising in 2007 that many young coworkers were carrying 30K USD equivalent on their credit cards and thinking nothing of it.
The debt is not a new all-time high. Many Americans spent their COVID handouts paying down their credit card debt. However revolving consumer debt is quickly getting close to setting a new high.