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Most of what I read indicates that the productivity of new fracking wells in US seems to be falling, indicating supply will be dropping especially as majors seem to have "gotten the message" and are now emphasizing cash flow and shareholder returns rather than production
BOABAC only lost 1%. Looks like insurance companies got hit. One I watch was down 3.4%. I’d think the issue relates to interest rates in some manner - which were all over the place today. (And some of the weather phenomena contributed too).
@LewisBraham said: “I wonder if any large institutions in particular were getting out, and if so, why?”
One i watch, GHC , is 65% institutionally owned. It’s dropped like a rock, losing about 15% the past 10 trading days by my rough count. The why is hard to answer. I tend to attribute moves like that to market manipulation more than to fundamentals. Drive the price down and then buy back in later. Or maybe short sellers at work.
But BRK is different from most insurance companies and it has lot of other exposure too. Still, in a banking debacle and on a down market day, BRK is down too.
Lots of stuff is unsettling, including the escalating U.S. / Russia tensions. Might have played a role in today’s equity sell-off.
Oil is something I’m unable to understand or invest in. There have always been huge cyclical swings in price that are hard to predict or understand. Go back 30 years and the same was true. So many factors affect price: policies of OPEC members, fracking (or lack thereof), environmental regulation, trade embargos, and of course economic currents as Lewis notes.
Thanks @yogibearbull. Your understanding of the insurance business far exceeds mine.
Berkshire holds up well at first in sell offs It’s defensive quality attracts some. Maybe there is some buybacks. But when market craps, eventually they buy backs stop. Then it’s trades down to catch up with the rest of the hoi polloi.
Is not the first to bounce back either. First we must grab trash !!
Probably sit on it forever 3 - 5 yrs wholile waiting for profits/ collecting quarterly Dividends
Ah MBL of NJ Now there is an (awful) blast from the past. The hospital my wife worked at had their 403(b) there. Someone got paid off, obviously because why not use Fidelity or Schwab?
We learned the hard way what happens when your 403(b) company goes belly up. It took months to get anything back. All this talk about "don't worry if Schwab goes bankrupt, they won't take your securities with them" misses the important point that you may get your stuff back but it will take months.
It may be different with a publicly traded company than an insurance outfit like MBL
First, our money was tied up for 5-6 years, not months. Rates offered were below high m-mkt rates at the time. So, only opportunity lost, not nominal money.
I called our state insurance department and said that I wanted my money back. They said, not so fast. States' insurance departments were coordinating the rescue and I will just have to be patient. BUT, if I wanted my money right away, I could take the 40% haircut offer on the table. Well, I "decided" to be patient.
By now I have personal experiences with 1 bank failure and 2 insurance failures. Only the FDIC is prompt in setting quick up to the limit. No experience with the SIPC, but from the news, I think that they also take their time while brokerage positions held may be frozen.
I’d say buckle your seat belts Wednesday morning. Should be fun.