When Israel moved into South Lebanon in 2006, oil price increased and share markets were slightly muted.The markets have been rallying recently. A point to note is that the turnover volume of trades is still very small, which means there are fewer participants in the stock market. When there are fewer participants, it means prices can be easily controlled by market manipulators. So can this rally sustain?
Anyway, seems like even if OPEC is not able to revive the oil prices, a war can always help. Higher oil prices lead to higher expenses in this environment when demand is decreasing, leading to lower profit margin. Sounds just bad for certain companies?
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team