Tuesday 22 February 2011

"Oil price turmoil 'threatens world recovery'"

FTSE 100 @ 5926.9, -87.90 (-1.46%)

Wow, bit of shock this morning. I can't recall having a skinful last night but had to rub my eyes at the sea of red in my watch list this morning. Unfortunately, my watchlist really was a sea of red across the board (funny I always think that a blue sea is prettier) so I would have preferred the hangover and bloodshot eyes that a night on the tiles brings.
The virtual portfolio is down around 1.7% this morning as a result (as at 9:30) but reading some of the media reports everything is focused upon the possible symptom as seen in the headline of this article on thisismoney.co.uk Oil price turmoil 'threatens world recovery'.

Lets get some perspective guys as I am not sure that you are focusing on the right issues? People are dying and the potential wildfire effect of civil unrest across the Middle East is the issue as opposed to the oil supply being affected and our lifestyles being inconvenienced.
Although minor in the context of peoples lives, this should be just one of many incentives to offer diplomatic help and assistance to the region (whether it is accepted or not is a different question). Thinking about it the UN also seem to have been very quiet throughout recent events, which I find strange.

As to the markets, well they just don't like uncertainty do they, and then the herd instinct kicks in. So until a possible solution can be envisaged they will remain volatile but, if you believe that things will stabilise again, then, perhaps for the braver amongst us, the question is when do markets, sectors, or companies become oversold?

thisismoney.co.uk: Oil price turmoil 'threatens world recovery'

bloomberg.com: Asian Stocks Retreat as Political Upheaval, Surging Oil Threaten Recovery

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