Alan Steel
01506 842365
MENU
  • Home
  • About Us
    • Close
    • About Us
    • What We Do
      • Close
      • What We Do
      • Our Services
      • Our Philosophy
      • Our Awards
      • Our Reputation
    • Who We Are
      • Close
      • Who We Are
      • Meet the team
    • Our Approach
    • Financial Planning
  • Testimonials
  • Investments
    • Close
    • Investments
    • Investment Advice
    • Portfolio Building
  • Pensions
    • Close
    • Pensions
    • Retirement Planning
    • Early Retirement
    • Pensions as simple as...
  • Tax
    • Close
    • Tax
    • Tax Advice
    • Tax Planning
    • When I'm Dead and Gone
    • Inheritance Tax
    • HMRC Digital Accounts
  • Insights & Media
    • Close
    • Insights & Media
    • Letters from Linlithgow
    • Informing You
    • Letter from America
    • See us in the Press
    • Master Investor
    • Points of Few
  • Contact Us
Independent financial advisers founded in 1975
Over £1.4 billion client funds under management
17 industry awards for advice since 1989

By Mike Williams, Genesis Managing Partner

Founder and Managing Partner of Genesis Asset Management, New York

Letter from America

Imagining the Day We Don’t Need Oil

By Mike Williams | Wednesday, 04 July, 2018

After moving halfway through the year we’re looking more and more like the 2014 rendition we spoke of as 2018 began.

Back in 2014, we had a relatively thin trade range until November, with a nice run to the finish line.

And as difficult as this may sound for the near-term, I would not be at all surprised to see something like this unfold again.

The markets are simply building and storing up energy.

And Speaking of Energy…

The crude oil market has once again gotten the attention of the crowd, as the chatter about hitting $100 per barrel surfaced once again.

Folks, that’s highly unlikely to happen.

The US is now the leading oil producer, but you’re not going to see that in the headlines anytime soon.

We’ve seen crude oil facing its twilight for several years now.

Blame it on technology and Generation Y, but the pace of that demise is picking up even as the oil price sees one more final day in the sun.

While other energy sources are chipping away at the edges of demand every day, technology is letting us find oil almost anywhere.

And the recent price bounce has flooded the market with activity.

I was actually surprised to see that even Jeremy Grantham is coming around to this idea. His words at a recent conference may surprise some of you out there:

Taking that idea a step further and think about how we stand in line today at a gas pump for 7 or 8 minutes to fill our tank.  And we exchange that window of time for about $40 or $50 in America, all for the benefit of moving around for 300-400 miles in a car.

Then we do it again.

Folks, the moment we can stand at another type of pump and charge a battery for 7-8 minutes for the same 300-400 miles, it is lights out for crude oil as we once knew it.

And as for the Middle East…?

Like I’ve said many times before, the Middle East has two things in abundance:  Sand and Oil. And we don't need sand.  So, imagine the day we don't need oil.

That day will arrive with a plethora of headline writers telling you it’s the end of the world.

It won’t be.

What About Interest Rates Killing Housing....

Gosh, really?!

Match that with the beat on housing starts last week.

OK, but Manufacturing is slowing, right?

Eh, no. It was a 9-point beat on 27.

Each summer arrives with the promise of market chop, a haze of scary headlines, and an absence of experienced hands at the control (they’ve mostly headed off to the beach).

And as we get deeper into that haze we should expect an increased volume of scary headlines and some stock market ups and downs.

Every summer seems to come and go in a similar vein.

And if we’re expecting it to happen instead of fearing its arrival we’re less likely to overreact once it arrives.

©2023 Alan Steel Asset Management Limited is authorised & regulated by The Financial Conduct Authority. Please note that the Financial Conduct Authority does not regulate some forms of tax advice. Company Registration: SC58014

You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

The investment services and/or investments referred to in this website may not be suitable for you. If you are unsure we suggest you contact us to discuss matters further. If we believe our services are not right for you we will tell you.

When investing money, whether for income or growth, you are placing your capital at risk as the value of investments may vary, so you could get back less than you started with.

The Financial Conduct Authority does not regulate Tax Advice, Trusts or wills. Alan Steel Asset Management Limited is authorised and regulated by the Financial Conduct Authority. The guidance contained in this website is subject to the regulatory regime of the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients.

FOS details can be found at www.financial-ombudsman.org.uk

Alan Steel Asset Management Limited are not responsible for the content of external sites.

  • Cookie Policy
  • Privacy Policy
  • Website terms and conditions
  • Tax Services Privacy Notice
  • Contact Us

This site uses cookies. By using this site you agree to the use of cookies. Read our Cookie Policy