Wall is absolutely right.. I echo that sentiment. We have been in a real "earnings recession" had it not been for share buybacks.. and we've had revenue recession for quite some time.
I have started to nibble back into the Energy Sector this week, because I see very little downside from $30 oil. I follow the market closely, and see $30 very unrealistic "long term" . How many shale producers are still producing oil today , just to give half of their revenue away to pay back interest from their loans. That will peter out very quickly here in 2016.
Long story short. Many of these producers will go south... with their production... and oil will start to stabilize again.
$50 is a realistic number once equilibrium sets in again.. and the Saudis will quit pumping once they view the threat as over.
But having said that , keep in mind $100 oil is probably a thing of the past for many years. The shale revolution has completely upended the oil patch, and can be quickly turned on again to put a ceiling on oil prices.
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