There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.
Hang on, I thought Trump and everyone else was getting ready to fight North Korea’s Kim Jong-un? Apparently not. Syria is now the target of Trump’s wrath. The biffo is both ideological and economic. The other motivating force behind this ongoing war though is — surprise, surprise — energy.
The last few months Woodside's share price has been inconsistent. Back in January they were trading at around $34 a share and started to fall down since, with the price only slowly starting to come back in March.
Santos Limited [ASX:STO] share price has increased by 16.47% today. Shares are currently trading at $5.91, after closing last week on $5.07. The Adelaide-based company is the country’s third-largest energy producer, with a market cap of $12.30 billion.
Woodside are hoping their stake will enable them to control 75% of a permit which will contain the majority of the Scarborough gas field. The deal is set to be complete by the end of the month.
Amongst all the panic and hand-wringing over what the volatility of the past week means, we haven’t heard much about China. Which is kind of crucial, especially for Australia. Put simply (and accurately) if China holds up, Australia will be fine. So, is China holding up?
The sad fact is that when an investment opportunity is unloved, un-hyped and generally off the mainstream radar, no one wants to know. But the reality is that it’s unloved sectors where you can frequently make the biggest returns. Oil could be the story of 2018.
Are we on the cusp of yet another rise in geo-political risk in the Middle East? It looks that way, and the implications for global markets could be massive. Where will you see it most from an investment perspective? Where you always do; in oil.
If stocks and oil prices do indeed have a strong correlation during ‘risk on’ times, then that is when they tend to move in sync. As markets are now clearly in a risk on mode, oil prices are likely to become more attractive to investors.
A frenzy of drilling in shale gas fields across the country over the past decade has put the US within arm’s reach of achieving energy independence. Gas prices are at record lows, and electricity prices are falling. The US economy is booming right now.