http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world Is This the Largest Transfer of Wealth in the History of the World? A Bank of America analyst says that the low price of oil effectively moves $2 Trillion a year from oil producers to consumers and is one of the largest transfers of wealth in human history. Bloomberg Business reports the story. Optimists argue that cheap oil is a good thing for consumers and commodity-sensitive businesses, while pessimists point to the hit to energy-related investment and possible spillover into the financial system. A new note from Francisco Blanch at Bank of America Merrill Lynch, however, puts the oil move into a much bigger perspective, arguing that a sustained price plunge “will push back $3 trillion a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history.” What is the spinoff of low oil prices and the huge transfer of wealth that it entails? Blanch and his team already see evidence that the fall in the price of crude is having a positive impact on demand, and say that it could accelerate even further if prices don’t pick up. Meanwhile, in emerging markets, where much of the story of late has been about disappointing economic growth, Blanch still sees huge upside potential in terms of automobile penetration and consumption. Take China for example, where the strategist sees the oil plunge helping to fuel a boom in SUV sales: “Moreover, the low oil price is encouraging Chinese consumers to buy increasingly larger cars. Sales of SUVs, the heaviest passenger vehicles category, are up 60 percent year-on-year in the last three months, while overall passenger vehicle sales are growing robustly at 22 percent.”

1. IS THIS THE LARGEST TRANSFER OF
WEALTH IN THE HISTORY OF THE WORLD?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
A Bank of America analyst says that
the low price of oil effectively moves
$2 Trillion a year from oil producers to
consumers

3. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
And it’s one of the largest transfers
of wealth in human history.
Bloomberg Business reports the story.

4. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
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Before We Continue…

5. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Optimists argue that cheap oil is a
good thing for consumers and
commodity-sensitive businesses

6. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
While pessimists point to the hit to
energy-related investment and
possible spillover into the financial
system.

7. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
A new note from Francisco Blanch at
Bank of America Merrill Lynch,
however, puts the oil move into a
much bigger perspective

8. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Arguing that a sustained price plunge
“will push back $3 trillion a year from
oil producers to global consumers,
setting the stage for one of the largest
transfers of wealth in human history.”

9. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
What is the spinoff of low oil prices
and the huge transfer of wealth that it
entails?

10. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Blanch and his team already see
evidence that the fall in the price of
crude is having a positive impact on
demand, and say that it could
accelerate even further if prices don’t
pick up.

11. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Meanwhile, in emerging markets,
where much of the story of late has
been about disappointing economic
growth, Blanch still sees huge upside
potential in terms of automobile
penetration and consumption.

12. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Take China for example, where the
strategist sees the oil plunge helping
to fuel a boom in SUV sales:
“Moreover, the low oil price is
encouraging Chinese consumers to
buy increasingly larger cars.

13. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Sales of SUVs, the heaviest
passenger vehicles category, are up
60 percent year-on-year in the last
three months, while overall passenger
vehicle sales are growing robustly at
22 percent.”

14. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Money is going out of the pockets of
oil companies and oil producers like
Saudi Arabia and is effectively being
transferred to consumers across the
globe. How long will this last?

15. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Supply and Demand

16. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Analysts blame a slowing Chinese
economy and increased U.S. crude oil
production for the dramatic fall in oil
prices.

17. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
If the current situation and one of the
largest transfers of wealth in the
history of the world is to continue
these factors need to continue.

18. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Forbes looks a China and crude oil
prices in 2016.

19. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Since China accounts for a large
share of the global demand for oil, a
slowdown in its economy is likely to
result in a further decline in crude oil
prices in the coming months.

20. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Additionally, the depreciation of the
Chinese Yuan, and the rising debt
levels in the country, have been
adding to the insecurities of the
investors across the globe.

21. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Hence, in this article, we aim to
discuss the economic conditions
prevailing in the Chinese economy
and their potential impact on crude oil
prices over the course of the year.

22. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
Chinese government to is trying to
move from an economy focused on
manufacturing and exporting to a
consumer driven economy.

23. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
If that move is successful it will
probably reduce China’s demand for
imported oil and drive prices lower.

24. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
If China experiences an economic
hard landing its demand for oil could
drop more than expected.

25. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
In the meantime there are oil
producers across the globe who are
losing money pumping oil at current
prices.

26. http://profitableinvestingtips.com/profitable-investing-tips/is-this-the-largest-transfer-of-wealth-in-the-history-of-the-world
To the extent that these producers fall
out, prices could rise putting to an end
what could otherwise be the largest
transfer of wealth in the history of the
world.