I'm just about positive that the present European QE that is being pumped into the EU financial system is driving down the value of the EURO which in turn kills any chance of any large upswing for RDS-A. That's why RDSA.AS overseas has barely suffered compared to RDS-A. My fear is that the EURO may be heading to parity with the Dollar.
Then there is always the thought of what will happen when Janet (snake eyes) Yellen starts to raise the interest rates here in America. I would like to know what others thoughts are on this subject. Thanks
Guru, I envision the same scenario to transpire in the not so distant future. RDS-A has taken a real butt kicking since it’s $83.00 high last year…. and like you said, RDS-A has taken a lot more lumps than its overseas cousin (RDSA.AS). We have a lot of catching up to do. I think the EURO will recover but it will most likely be slowly because of the Overseas QE being injected into the main artery of the European banking system. Correct me if I’m wrong, but when Federal Reserve injected all the QE into the US monetary system here, it devalued the dollar for quite some time, we just sat back and watched the devaluation of the dollar little by little. At the same time, the value of the EURO rose and made RDS’A shine. Note: I didn’t like RD’S PE ratio at that time because it was over 20, and it was a warning sign to all of us.
I think oil prices will slowly rise from here and this rise will carry RDS-A upward (with or without the EURO’s help) and like you said… if the EURO does start to gain strength, it will act as rocket fuel to propel RDS’A up even faster and longer. This is great news for any long-term investors. Right now we are probably witnessing a bunch of “short covering” and “run with the herd” investing. Even after last week’s announcement that stated oil inventories were still building, oil stocks done well. It makes me wonder what will happen when they announce that inventories have fallen. It’s coming, we just don’t know when or what Wall Street’s reaction will be.
Good luck to all