New High after New High.
Jeffrey M. Thompson.
Are you calling for just a bounce? At $35/barrel oil, virtually every U.S. shale company is cash flow negative and is therefore burning through cash and other forms of liquidity such as bank revolvers and term loans, if oil remain at these prices, the U.S. shale sector is facing an avalanche of defaults.
all I see is a looming disaster ahead...2008 all over again. Note that as rates dropped over the years, companies increased profits by refinancing their debt at cheaper prices. Now that rates will go up, costs will increase. We never really had anything more than the Feds keeping the market artificially high. The party is over and now bulls will pay.