Mohamed El-Erian, the economic and financial adviser to Allianz "insider" for the financial portal Newsmax, warns investors - current oil prices - a "curse rather than a blessing" - based on AMarkets.
Over the last 12 months the price of oil fell by half. Prices fell below $ 30 a barrel for the first time since 2003. Expert pessimistic and supports his theory the following arguments:
* With the reduction of the level of revenue for the energy sector, US firms will reduce personnel and capital costs. Consumers, in turn, have already exhausted the potential of joy from lower prices for gasoline and began to actively save. * The global world has shifted its priorities concern on prices towards the fear of low inflation as opposed to earlier fear of high inflation. Currently in the United States talking about low inflation, and in Europe - the "disinflation." * Hard volatility in the oil market unsettled assets in other segments. Against the background of the oil drawdown possible central banks have lost their power. Of course, the mode of instability liquidity in the market declined sharply in volume - and it is clear, investors were waiting and are not at risk to make any speculative bets.