The 2015 fiscal year was a year of slow slides to the bottom of a very deep barrel. Investors were forced to spend their time watching oil prices fall lower and lower, and the rest of the markets took a fall with the price of oil. There are several different ways that the markets may rebound, but most industry experts like Jim Dondero think that oil will provide all the relief that is needed. This article explains how investors like Jim will wait for the oil prices to rally.
There are many reasons why oil prices will rise again, and investors like Jim believe that oil has to rise simply because of basic math. The OPEC nations may choose to back off production or the prices may begin to rise as investors feel more confident about oil on the whole. It is possible that investors will begin to feel confident again, but a wise investor like Mr. Dondero will wait for the market to show him something that is worth believing in.
#2: Oil Impacts Everything
Oil prices have an impact on every market in the world. Highland Capital Management is run by Jim and his team, and their portfolio has felt the pain of low oil prices throughout the world. Only a small amount of what HCM invests is invested in America, and every part of their portfolio is waiting for oil prices to rise. Even the richest men in the world must wait for oil prices to rise before they may make bold moves again.
#3: What Is A Rally?
Investors are waiting for a rally to occur that will help oil prices jump. Oil prices may take decades to reach their previous highs, but a rally would constitute even a few days of good trading that will help the price remain slightly higher. There are several different ways that a rally could occur, but investors must feel confident for more than one day to help prices rise.
Every investor in the world is waiting for oil prices to rise, and investors like Jim Dondero believe the markets will recover. Oil cannot get much lower, and patience will be rewarded among investors who believe that the price of oil can be forced up by producers, will rise during a major rally or will rise as confidence returns to the markets. Follow Jim on Twitter and Facebook to stay up to date on the market.
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