Oil Has Fallen

Many people are not following their normal routines these days.  As a matter a fact by law many individuals are not even allowed to drive except for emergency services across the United States.  The braud stay at home orders have made massive changes in the economy and how the average citizen lives.  But for those who are out and about, they have started to notice a trend.  The gas prices have fallen to their lowest levels since 1999.  I can remember those cheapest I ever saw gas was for 75 cents down in Florida on  a family vacation in the early 90’s.  I will never forget the shock then and shock now as I see gas prices nearing a dollar! Granted they are still averaging $1:50 where I am located but that is incredible.

So why is the gas price falling so fast? It fell around 27% on Monday to a price of 13.16 after falling 19% the week before. Gold also fell around 2% too.  This is most likely all based around the uncertainty the COVID-19 pandemic has brought.  It has lowered our markets and brought with it many ups and downs.  Some Financial Research Companies like AMerican FX Capital predicted this months ago, but most of us never thought it possible. The stimulus package that ran out of funds for Small Businesses and investors is putting everyone on edge and we are all wondering if it will get more funds to keep out economy moving forward. 

Currently the house and Senate are debating whether to increase funds and are fighting over who gets to fund their pet projects along with the stimulus package extension.  It is still not known if they will actually pass another stimulus package. All this uncertainty has driven prices low and even though small resurgence have occured in our market, most investors are simply too skeptical and unsure what to do to start buying again.

If the Stay at Home orders were not in place it would be a great time to do a driving vacation across the nation. The gas prices are low and the weather is starting to turn warm. As they usually stay home and follow local government law and regulations.  We are not giving financial advice, only talking about the market as we see it.  Please see your local broker, finance firm, or attorney for financial advice.

Berkshire Hathaway in Trouble?

Most traders or business individuals know of Berkshire Hathaway.  If they don't know it by name they usually know the founder Warren Buffet.  Who began the multinational conglomerate which has made him famously wealthy. The company wholly owns some massive corporations and has holdings in a plethora of major corporations across the nation and world.  Warren Buffet has been hailed as one of the richest people in the world and also one of the wisest.  

He is followed by a horde of investors who attempt to match his every move.  His success is wide spread and well known and he has been known for succeeding even when the markets go down.  American FX  is also known for making wise investments and having some of its most profitable quarters by shorting markets when the market falls.

What is shocking is that Berkshire Hathaway is closing some of its owned businesses during the pandemic. He was quoted saying he is worreid about people who have 90% of their investments directly in his stock.  He is planning on protecting them and this is how they do it. They are valued at 450 billion dollars and own upwards to 90 companies and they have not disclosed whcih companies will be closeing and not reopening during the pandemic.  Corporate execuitves have been begging Berkshrie Hathaway for cash since they were able to accrue 128 billion last by the end of 2019 in cash.  Berkshire Hathway holds it annuel meeting on May the 2nd and they will disclose how well they did in Q1 and where they are going to be going. I think the stimulus packages that have been realsed are having an impact on this decision. 

The small business stimulus package ran out of money and currently the government is in discusssion on whether that fund will be increased.  Both sides of Congress are still arguing as to the benefits and how much moeny will be allocated to hospitals and small busienses.  They are also fighting about what other small types of stimulus they can sneek in for their own, Pork Projects”.  It is not known how fast they will come to a decision to extend small busienss loan program.  It is also not known if Berkshire Hathaway will invest in it and keep those small bsuiensses open when the economy starts back up again most likely in May. As per the usual we are not givign financial advice only talking about the market as it is.  Please see your local attorney, investment firm, or broker for financial advice.

To Buy or Sell Stock in this Market

Looking in my own investment account has become a different experience this month.  I never imagined that a 2008 like stock collapse would happen again in my lifetime. Or I didn't think that the mass fall in stocks would happen so soon.  Here it is again.  The massive drop in my worth as a US Citizen all due to a financial crisis that occurred due to a Global Pandemic.  The COVID-19 Pandemic has crashed financial markets all across the world and especially in the United States.  My shares in many companies dropped 25-40% in a month.  That means my investment in my own wealth just plummeted. So what do I do now.  

What do we do now.  If I was wise I would have investment in and taken advice from American FX who forsaw this calamity and traded well in the market to make great financial gains.  INstead my worth plummeted. I did not see the benefit in short selling the market instead I went on a buy and hold philosophy thinking that our market which had risen to great hights would stay.  So now that the market has fallen do I sell the rest of my investments which have already taken a loss and wait for the market to go lower and buy again? Or will the market increase and I will be able to claw back the money I spent to break even. 

I do feel happy to know that I was able to dump lots of my share before the big crash hit.  I was under the impression that the valuation of several companies I was invested in was a bit high.  I was able to make a nice profit by letting those go at a much higher price then I purchased them at.  So now the question is do you buy low and sell quick before the market jumps back up.  The roller coaster has been constant and to be honest I am not a penny trader nor do I like to buy and sell on a day to day basis. I prefer to instead buy and hold valuable companies and see them grow.

 I think investing in companies that are bound to succeed is the best choice and now more then ever investing in companies that have the capability to thrive in bad economic conditions is a smart move.  As always we are not giving financial advice only talking about the market as it is.  For Financial advice see your local broker, investment firm, or attorney.