Long term investors have a broad view of the market, traders’ view of the market is shaped by a sliver of information, and never the twain shall meet. The market of late has been at the mercy of the news/gossip regarding oil, much like a high school boy/girl who is about to ask someone to the Junior Prom. Today, the discussion was whether OPEC would limit production, which explains the movement of oil up; however, we have since learned that Saudi Arabia did not propose a 5 percent oil production cut.
The focus of oil is a small part of what everyone should really be focused on; the focus should be on the growth or lack thereof from the economies of the world. Apple announced earnings and the outlook wasn’t very rosy which Dan Niles outlined. Apple’s lack of growth in China really shouldn’t be a surprise to anyone given how its outlook for GDP has been lowered, the revaluation of the Yuan, and the construction tidal wave of the past handful of years has turned into more of an ankle buster/snapper. The U.S. economy is still chugging along but I don’t see companies reporting strong earnings or having a really favorable outlook for the next few quarters as the world’s economies slow down.