As we know this (stock market) is like a casino game...but the common denominator here is that the big boys and those that control the wealth on this earth are v. greedy...look around you and see how ever once in a while a certain sector crashes to only rebound...but what people don't realize is that while everyone is selling...someone is buying their shares...kick you out/buy you our for cheap and them when you finally wake up and you realize that they pulled the rug from under your feet...you start to chase it as it starts to rise like an Aladdin flying carpet.
Hang tight, hang on to your precious shares. In short if you held on to them from $3, $2, or even $1. when you bought in, why sell now???
Keep in mind that oil production is also going to drop in response to lower prices. The U.S. active drilling rig count dropped by another 43 for the week ending January 23, 2015 to 1,633. Based on the upstream companies’ capital budgets that I’m seeing, I expect the active rig count to drop below 1,000 by the end of May. We will soon have less than 700 rigs drilling for oil in this country and that means U.S. oil production will be on decline by the 4th quarter. In the last three years, only the U.S., Canada and Brazil have increased production. The rest of the world’s oil production has been in decline despite previous $100/bbl oil prices
Even before the sharp decline in oil prices, global demand for oil was growing at a rate of 1 million barrels per day per year. In my opinion, within six months the rate of demand growth will accelerate to over 2 million barrels per day. Demand could go even higher if consumers adjust their driving habits like they did back in 1986.
The upstream oil & gas producers will soon be reporting 4th quarter results, including updated reserve reports. Now is the time to add the best oil producers and MLPs to play the coming rebound in oil prices.
