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IBDvalueinvestin (98.31)

Brent Crude Oil Crashing nearly -10% on the day.

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November 27, 2014 – Comments (4) | RELATED TICKERS: DIA , TQQQ , SQQQ

While American markets have the day off, oil is having its biggest one day drop since 2008 and its great news for consumers, technology and retail stocks in general because this drop in oil will provide a major boost to the wallets of those that need it most. The middle class and poor of the world will now have 30% of the money they used to set aside for heating and driving costs just 6 months ago to go directly to spending on other family needs. Such as ether food, clothes, technology, and entertainment.   

Its a rotation of wealth from rich oil men to the average Joe, its about time. 

 

 http://www.bloomberg.com/news/2014-11-27/opec-leaves-output-ceiling-unchanged-at-30-million-barrels.html

4 Comments – Post Your Own

#1) On November 27, 2014 at 5:25 PM, valunvesthere (23.06) wrote:

Investopedia Video: The Operating Leverage And DOL 

Investopedia Published on Jan 27, 2014   

 

Also, low oil prices will benefit airline, cruiseline, and shipping (air, land, and sea) industries as many airlines will likely step up jet fuel hedge volumes,  locking in on jet fuel contracts long term.

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#2) On November 28, 2014 at 10:12 AM, IBDvalueinvestin (98.31) wrote:

My top picks for crashing oil are HA and CNW

One of the biggest expense to operations is caused by the price of oil.

Hawaiian Airlines saves more when oil goes down because they have longer flights then the average carrier.

CNW saves because they have a huge fleet of trucks that need to get filled up daily with fuel. 

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#3) On November 28, 2014 at 1:21 PM, valunvesthere (23.06) wrote:

Only if companies pass the savings to consumers in reducing surcharges.

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#4) On November 30, 2014 at 9:14 PM, rrw4 (38.03) wrote:

Hawaiian Airlines saves more when oil goes down because they have longer flights then the average carrier.

This is not an accurate statement.    

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