Don’t worry when US market goes crazy
In the hours after the US President is elected, equity investors need to brace for volatility. What they shouldn’t do is panic.
That’s because regardless of how prices react on Wednesday, next-daymovesin theS&P 500 Index are useless in telling what comes after. While the index swings an average 1.5 percent the day after the vote, gains or losses over the first 24 hours predict the market’s direction 12 months later less than half the time.
This matters because the compulsion to act in the vote’s aftermath is often very strong — stocks swing twice as violently as normal those days, data compiled by Bloomberg show. They plummeted 5 percent just after Barack Obama beat John McCain in 2008. But while nothing says Wednesday’s reaction won’t be a harbinger for the year, nothing says it will, either, and investors should think before doing anything rash.
“Trying to trade that is very difficult,” saidThomasMelcher, the Philadelphia-based chief investment officer at PNC Asset Management Group. “Even if the market sells off, if you have any reasonable time horizon, that should be a buying opportunity. The dust will settle and people will conclude the economy is OK.”
In the 22 elections going back to 1928, the S&P 500 has fallen 15 times the day after polls close, for an average loss of 1.8 percent. Stocks reversed courseandmovedhigher over the next 12 months in nine of those instances, according to data compiled by Bloomberg.
Nothing shows the unreliability of first-day signals more than the routs that accompanied victories by Obama, whose election in the midst of the 2008 financial crisis preceded a two-day plunge in which more than $2 trillion of global share value was erased. It wasn’t much better in 2012, when Election Day was followed by a two-day drop that swelled to 3.6 percent in the S&P 500, at the time the worst drop in a year.
Of course, Obama has been anything but bad for equities — or at least, he hasn’t gotten in their way. The S&P 500 has posted an average annual gain of 13.3 percent since Nov 4, 2008, better than nine of the previous 12 administrations. Data like that implies investors struggle to process the meaning of a new president just after ElectionDay, or infuse the winner with greater influence than they have.
The company estimated that it could extract 1.8 billion to 2.4 billion barrels of crude from the oilfield, and the production level would make the field more prolific than the oilfield discovered by ExxonMobil off the South American coast of Guyana in 2015.
Based on two wells drilled earlier this year along with existing 3D seismic data, it has estimated the oil in place under the current Smith Bay leasehold at 6 billion barrels.
Despite the fact that its development will not be easy, it could produce up to 200,000 barrels per day, it said.
“It’s ofasizeandscale thatwe can bring it on, such that it will have an impact on the (TransAlaska Pipeline System) going forward, which to me is what everybody in this state ought to be focusing on — how do we keep the pipeline up and full and running,” Caelus CEO and founder Jim Musselman was quoted as saying in an interviewwith Petro GlobalNews.
According to public records, Nuoxin is a comprehensive financial holding group that started with traditional financial services and expanded gradually to industrial investment, wealth management, securities, factoring and financial leasing.
It has also set up an asset management company in the United States, said the company.
NordAq, owner of the bay where the project is located, owns around 550,000 acres (222,576 hectares) of highquality and easy-to-drill oil fields in the Cook Inlet and the North Slope, worth a total of over $100 billion.
Eyeing the huge potential in NordAq’s vast resources and great value, thecompany signed astrategic investmentandcooperation agreement with the company in July 2014, as the first step toward its energy investment abroad, saidYang.
maximum crude output in newly discovered Alaska oilfield