@1mg the guarantee on the annuity is a single company risk...
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@gtt, You are 100% correct. When I first found this out, I was amazed by this simple, yet little known factoid. It flies over most people’s awareness until it is calculated mathematically. This is the main reason most retirees become very conservative in their investment choices and approach to risk. What is lost is twice as hard to gain back. While taking distributions from your retirement accounts to live on, any unplanned misfortune in the markets will exacerbate the problem further. Many long term employee who have a sizable nest egg already built up and have little to no debt usually choose the pension annuity for this reason. Having a guaranteed income stream for a lifetime, coupled with Social Security provides more financial security than some first realize.
Saudi Arabia and Russia are in a play to burn the American shale revolution. The whole thing is coordinated. Look a bit deeper, American exports are running free unencumbered, yet the markets expect Russia and SA (Opec +) to cut production again and again to keep the price levels up? They are sustaining the market price so American shale can benefit (many barely keeping their heads above water) without any coordination or cuts, why should they? They pay the price and the US reaps the benefits. They have enough of that BS. Time to make the shale players pay to play. This will not be over soon, they need time for shale players to feel the pain. The first big move was to scare the c-ap out of the bankers so they won't loan more cash. Witness the power play, its going to be a long summer. Sure it will hurt them too but those in power won't suffer and they don't care about the tearful common folk, its hard ball business on a grand scale. Americans better get organized and come to the negotiation table or suffer for an extended period of time. MBS and Putin aren't at war with each other, they are shaking hands behind the curtain while they pull the rug out from under the feet of American shale. Time for a round of consolidation and elimination.
The headlines in 3-4 months could also be, chapter 11 for several players.
Just because these companies survived in the previous shale bust that doesn't mean all of them will get out of this one unscathed.
@zna - You do understand that if a stock goes down 50% and then rises by 50% it's still down 25%. Because of math.
Shale Gamblers Knocked Out
Historic buying opportunity.
Shell shocked.
Oxy market cap = $11billion today......
More like 3 or 4 months, maybe.
Don’t lose your minds. In one month, the headlines will read;
Apache 50% Up, Marathon 49% Up, OXY 40% Up, Devon 40% Up, Diamondback 45% Up.
We are happy...
Guess we are doing good compared to them.
Eh?