Posted on Jan 29, 2015 in
FOCUS ON FINANCE
Presented by Hardee Investment Group and RBC Wealth Management –
It sure is nice to see gasoline on its way to $2 per gallon. The collapse in oil prices has been amazingly swift, but you shouldn’t have been surprised. In 2012, we published our four themes for the next decade, and the number one theme was to invest in commodity users, not producers. It’s fair to say few paid any attention, because the oil shale boom was underway. Millionaires were being made every day, and the Eagle Ford Shale, south of San Antonio, was the newest gold rush. Oil prices hit $110 a barrel, and gasoline approached $4 a gallon.
The Organization of the Petroleum Exporting Countries (OPEC) brought the party to an end last Thanksgiving, with oil prices down almost $50 a barrel from its peak. Now, gasoline is selling as cheaply as $1.99 a gallon in some parts of the country.
This is bound to have an effect on Texas and our area. We believe we will see budget cuts and layoffs and a slowdown in housing, which we’ll discuss in the next issue. Texas is still greatly dependent upon energy prices.
So what do you do? The themes remain strongly in force. We think we should invest in commodity users, invest in growth such as healthcare and technology and invest in the rebirth of American industrial companies. About 15 percent of America prospers when oil goes up. As oil goes down, it’s the other 85 percent’s turn.
Visit with us today to learn how we can help streamline your investment portfolio to try to make the most of the other 85 percent’s turn. Call us at 713-853-0879 or visit us anytime online at www.HardeeInvestmentGroup.com.
The views presented herein are solely those of H.H. “Will” Hardee, and do not necessarily represent the views of RBC Wealth Management. Current status of issues discussed in this letter is subject to change based upon market conditions and industry fundamentals. Clients should work with their Financial Advisor to develop investment strategies tailored to their own financial circumstances. Past performance is no guarantee of future results. The name Hardee Investment Group refers to a group of Financial Advisor working in the Houston, Texas office of RBC Wealth Management. The Hardee Investment Group is not a separate legal or corporate entity. All services offered and all memberships referenced in the presentation refer to the services offered or registrations held through RBC Wealth Management. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.
RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.
