Oil, Oil, Toil and Trouble: Reviewing our 2nd forecast plus OPEC implications

Having gotten off to a winning start last week with our forecast on Europe, moving closer to home did not prove to be a better hunting ground. We forecast back in July that “the Kiwi Dollar would NOT outperform the Australian dollar”. In this case the flightless bird outwitted us, with the milk price rebounding from August lows and the iron price heading in the opposite direction, thus negated the forward rates differential. The other news we are focusing on from last week are the ramifications from the farce of the OPEC meeting. Clearly oil stocks are the losers, but what are some of the other asset classes that may suffer and is it at relevant for the Federal Reserve? For full article click (VIEW LINK)