Submitted by Tim Price via SovereignMan.com,
In a crisis, it helps to have good counsel. Consider the following sage advice from investment strategist Mike Tyson:
“Everyone has a plan ‘til they get punched in the mouth.”
Or as German military strategist Helmuth von Moltke the Elder put it, somewhat more formally:
“No battle plan ever survives contact with the enemy.”
In Saudi Arabia, the Tadawul All Share Index plunged 5.4% on Sunday and dropped further on Monday before ticking up a smidgen. It’s at the lowest level since March 2011. Soothsayers blamed oil, and what Iran will do to the already oversupplied oil market now that the nuclear sanctions have been lifted. But Saudi stocks started losing it in September 2014 and have since collapsed 50%.
Via John Hussman's Weekly Market Comment,
With the topic of distress among U.S. oil and gas exploration and production companies becoming more important with every passing day that oil not only continues to drop, but certainly fails to rebound to levels that allow US energy companies to return to a cash flow positive state, we would like to show just how much debt is at stake.
With the lifting of Iran sanctions, the Tenge has crashed 5% to record lows at 377/USD (extending the currencies collapse since the USD-peg was scrapped in August).
Furthermore, as Eurasianet's Joanna Lillis reports oil production is entering a new year of decline this year in Kazakhstan - a dismal omen for a country so heavily reliant on energy exports.