Energy and Oil …. Friend or Foe?

This article, originally scheduled for the Q 3 Newsletter, accidentally hit the cutting room floor.  Here is an abbreviated version, with the full article to come in the Next Newsletter.

Energy our Lowered Price Friend

Airlines, heavy energy-consuming companies and summer vacationers are all cheering the lower price of oil, which tumbled dramatically in the fall of 2014. Lower energy prices act as a wage increase for most as in some way a lowered price of energy helps as a “consumer.”

As an Investor or worker in the Oil and Energy field, more of a Foe

As mentioned at the end of our Earnings Article in our Q3 Newsletter, energy has made up a great deal of the drop in earnings for the entire market as a whole. Just as vertical drilling and the various Shoal plays came on-line strong, the price as dropped like a rock.

This from FactSet: EPS estimates for 2015 — Energy is the far right diving down!

Energy and Oil Related, Friend Again

So as a consumer we are happy, but greatly overshadowed if we invest, work or have any related dealings with the energy area.

Hold on, not all is lost—

FactSet 2016 Expectations

Yep…that’s Energy expectations roaring back next year.

Never go “all in” or “all out” !

Have a great day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com

http://www.street-cents.com

8222 Douglas Ave # 590

Dallas, TX 75225