Tuesday, January 12, 2016

Energy companies set for first earnings decline in 48 years....

Energy companies set for first earnings decline in 48 years

Energy EPS has collapsed along with crude oil prices.

The energy sector is about to show a decline in operating earnings per share for 2015, its first negative reading since the bank started keeping records in 1967.

The energy sector will depress U.S. fourth-quarter earnings and subdue growth for the entire S&P 500, making 2015 the weakest year for earnings since 2008

It is highly unlikely that the stock market will begin to rally in any significant way until oil prices find some measure of stability.

Oil could fall toward $20, this price level will destroy the energy sector, create havoc in the already chaotic middle east and bankrupt many institutions that have lent too much into this space. Not to mention all the jobs lost and lives destroyed.



No comments:

Post a Comment