In the Press / 01.21.2016
Matthew Weatherley-White is interviewed by Kathleen Hays on the Bloomberg radio show Taking Stock. Occurring just a few “brutal” weeks into 2016, the global financial community is sweating as they attempt to anticipate how the decoupling of the U.S. central bank, rising interest rates, declining demand for U.S. exports, and the uncertainty surrounding oil will play out in the near (and distant) future.
“What are the four most dangerous words in investing?” Weatherley-White asks, not waiting for an answer. “This time it’s different.”
“I gotta say it feels different to me — at least in terms of the energy markets. And I know that, as I said, it’s dangerous to say that. But when you have the consensus that was demonstrated in Paris around the idea that there should be some kind of regulatory and/or pricing requirement around carbon, where you have Saudi Arabia announce the possible float of 10% of the shares of Aramco on the public markets, when you have the continued, relentless sell-off in the price of oil because of increased levels of production (and no real indication that production is going to decline)… you just have to start wondering ‘ok, what are the dynamics in place that are going to cause the price of oil to 1) stabilize; and 2) go back up’?
Click the play button above to listen to the whole interview.