02-02-2022, 09:23 AM
Oil is good for now…glad I took a small position in it at the end of 2020.
Small community banks don’t really lend much into the risky side of the oil industry, it’s the large banks that have industry specialists that do it however and other non bank financing.
And yes they get hammered every so often….I used to work for one…when that happens in those economies it often takes the smaller players down as well. OKC is a good example of a city where the impact of oil is felt everywhere.
I have to think for January we got a bit oversold in the general market space except for leveraged entities like tech. I expect rate hikes will impact their balance sheet quicker than most, many solid C&I companies have lots of liquidity and are a bit more insulated from rate hikes for now.
Will be interesting to see how strong inflation trends continue. I saw an article on Reuters yesterday vaguely saying that inflation might be slowing already.
I’m shooting for a 4-6% return for the S&P this year with the rate hikes. COVID’s impact is fading and folks are tired of the restrictions the blue states have, I see most of those going away before midterms which will help their economies as well.
Sent from my iPhone using Tapatalk
Small community banks don’t really lend much into the risky side of the oil industry, it’s the large banks that have industry specialists that do it however and other non bank financing.
And yes they get hammered every so often….I used to work for one…when that happens in those economies it often takes the smaller players down as well. OKC is a good example of a city where the impact of oil is felt everywhere.
I have to think for January we got a bit oversold in the general market space except for leveraged entities like tech. I expect rate hikes will impact their balance sheet quicker than most, many solid C&I companies have lots of liquidity and are a bit more insulated from rate hikes for now.
Will be interesting to see how strong inflation trends continue. I saw an article on Reuters yesterday vaguely saying that inflation might be slowing already.
I’m shooting for a 4-6% return for the S&P this year with the rate hikes. COVID’s impact is fading and folks are tired of the restrictions the blue states have, I see most of those going away before midterms which will help their economies as well.
Sent from my iPhone using Tapatalk