I love this graphic. The markets are always changing. What we think is normal, rarely seems to stay put very long.
Two headlines I read reveal different perspectives:
Oil Off To A Bad Start Of The Week As Dollar Gains Strength
U.S. Rig Count In Free Fall: Plunges By 48 In One Week
So is the oil pricing just getting worse, or is there a possibility of improvement soon?
I attended a Houston real estate conference with 3,000 other people hosted by Del Walmsley. Del shared some macro economic statistics with us. One item he shared was the United States now has the best economy in the world. Is that due to Europe, Japan, and the countries dominated by oil exports are going broke?
For example, Saudi Arabia needs $68 oil to support its social structure. It has been borrowing money and spending currency reserves to support its welfare state. The other oil exporters are in worse shape.
Japan’s economy is struggling with a shrinking population.
Europe’s social welfare system is bankrupting the countries.
Even China’s rate of growth has slowed to its lowest in 25 years. The true state of China’s economic fortunes remains a mystery to the world due to government manipulation.
The United States is the largest recipient of foreign direct investment (FDI) in the world. FDI is a critical driver of economic growth and job creation and an increasingly attractive target for economic development agencies. Reported by the U.S. Bureau of Economic Analysis.
The largest FDI in the United States comes from China.
In Gregory, Texas, a huge steel pipe plant buzzes with activity and makes history in the process. Chinese-based Tianjin Pipe Corporation made a $1 billion investment in the plant, marking the largest investment by China in an American manufacturing facility.
It’s also a landmark in the development boom around the Port of Corpus Christi, which has seen an increase in foreign investment, thanks to financial incentives and its own geography.
In conclusion…How’s Your Perspective Today? Is there more opportunity or less opportunity?