Russian Oil Price War hits our U.S. Markets

While rates are dropping due to the coronavirus, our market was blindsided today by the new oil price war between Russia and Saudi Arabia. This caused U.S. oil prices to drop and took a major hit on U.S. Stock markets this morning causing the government to put a 15 minute halt in trading when the market opened with a 7% loss. The good news is that as of writing this post, the market has recovered over 1% and is below a 6% loss right now.

I would like to caution people against selling. These are systematic risk issues and are not reflective of the individual companies, but of the overall market. Many people are doing a run on the market forcing prices down by doing a sell off. The best thing you can do is take a breather, realize that the market is very undervalued and that it is a great time to buy stocks on sale. You likely won’t have prices this low for a long time.

The other takeaway is that interest rates are at an all time low and it’s an excellent time to refinance or pull cash out of your properties to reinvest. If anyone has any questions feel free to contact us at J.R. Financial.