This supposed oil glut is one huge hype and scam ! If we have two million barrels a day of over supply or about 730 million barrels a year it would last 40 days in taking care of US demand based on our using 19 million barrels a day. At 50 dollars per barrel Apple could spend 50 billion and buy the whole over supply and sit on it and make about 14 billion in a year. Please kindly let me know were I am wrong as I see this as a geopolitical engineered oil drop aided by the media and supported by shorts.
Expect what ? What really happened here today ?
They need to start buying more shares back with a dividend cut.
Go to the web site of Edward Yardeni and see his charts on oil. This is just a geopolitical engineered drop. Serving the purpose of hurting Russia and to a lesser extent hurting Iran. The other part of it is to reflate the global economy to avert a recession. But if lower oil doesn't move higher by the second half Jeff Gundlach says we will be in a world of hurt with the ten year below the 2 year in an inverted yield curve.
If you really check many stocks performed poorly last year. It was a handful of big cap stocks that pushed indices higher.
Most hedge funds don't own that many dividend stocks. The dividend isn't as important as the overall growth potential.
I wonder why they took such a big loss and didn't wait it out. Do they know something we don't?