Higher Oil Prices: What it Means (especially for women)
OPEC is cutting output. What it means in a nutshell: oil prices will likely go up. Why? OPEC controls a lot of the oil that is delivered to the world. They are cutting how much they will supply. Cutting supply when demand is not changing means prices will go up as buyers are competing for less and will be required to pay more. Higher oil prices translates into hiher inflation, which generally creates a headwind for the economy.
Bloomberg TV invited us on to share what that means for investors.
From an investment perspective, we emphasize our buy on energy related stocks (think XLE). Also, higher oil prices generally hurt the US dollar, which helps international stocks. We like those too, relative to US stocks.
We focus on educating and motivating women with their wealth and take this opportunity to reiterate that the current news cycle of OPEC and higher oil prices support our current strategies overweighting energy and international exposure.