logging in or signing up why small market changes can cause large price swings jimlear Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 15 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: April 24, 2011 This Presentation is Public Favorites: 0 Presentation Description A new supply and demand model is described that can explain large price swings when only small apparent changes occur in supply and demand. Comments Posting comment... Premium member Presentation Transcript Why Small Market Changes Can Cause Large Price Swings: Why Small Market Changes Can Cause Large Price Swings www.Portfolio n Planning.com – Jim LearMotivation: Motivation Oil has seen volatile price swings in the last few years Speculators have been blamed Presidential Working Group has been formed “to identify and address potential cases of fraud and manipulation” No evidence of fraud or manipulation Developed a model for stock price volatility that is applicable www.Portfolio n Planning.com – Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearImproved View of Supply: Improved View of Supply www.Portfolio n Planning.com -- Jim LearImproved View of Supply: Improved View of Supply Total Supply www.Portfolio n Planning.com -- Jim LearImproved View of Demand: Improved View of Demand Total Demand www.Portfolio n Planning.com -- Jim LearImproved View of Supply and Demand: Improved View of Supply and Demand Change in Total Demand Moderate Change in Production and Prices www.Portfolio n Planning.com -- Jim LearImproved View of Supply and Demand: Improved View of Supply and Demand Tiny Change in Total Demand Tiny Change in Production Enormous Change in Price www.Portfolio n Planning.com -- Jim LearChinese Growth in Oil Consumption: Chinese Growth in Oil Consumption www.Portfolio n Planning.com -- Jim Lear Source: BP Statistical Review Of World Energy, 2010Conclusion: Conclusion Normal market conditions can cause very large price swings with almost negligible production or consumption changes Vast increases in Chinese oil consumption are likely the reason for significant price increases Significant weakening in the dollar’s purchasing power can also affect Prices are not being manipulated by speculators These conditions can occur in any market and they might appear as market bubbles Jim.Lear@portfolionplanning.com www.Portfolio n Planning.com – Jim Lear You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
why small market changes can cause large price swings jimlear Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 15 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: April 24, 2011 This Presentation is Public Favorites: 0 Presentation Description A new supply and demand model is described that can explain large price swings when only small apparent changes occur in supply and demand. Comments Posting comment... Premium member Presentation Transcript Why Small Market Changes Can Cause Large Price Swings: Why Small Market Changes Can Cause Large Price Swings www.Portfolio n Planning.com – Jim LearMotivation: Motivation Oil has seen volatile price swings in the last few years Speculators have been blamed Presidential Working Group has been formed “to identify and address potential cases of fraud and manipulation” No evidence of fraud or manipulation Developed a model for stock price volatility that is applicable www.Portfolio n Planning.com – Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearTraditional View Of Supply and Demand: Traditional View Of Supply and Demand www.Portfolio n Planning.com -- Jim LearImproved View of Supply: Improved View of Supply www.Portfolio n Planning.com -- Jim LearImproved View of Supply: Improved View of Supply Total Supply www.Portfolio n Planning.com -- Jim LearImproved View of Demand: Improved View of Demand Total Demand www.Portfolio n Planning.com -- Jim LearImproved View of Supply and Demand: Improved View of Supply and Demand Change in Total Demand Moderate Change in Production and Prices www.Portfolio n Planning.com -- Jim LearImproved View of Supply and Demand: Improved View of Supply and Demand Tiny Change in Total Demand Tiny Change in Production Enormous Change in Price www.Portfolio n Planning.com -- Jim LearChinese Growth in Oil Consumption: Chinese Growth in Oil Consumption www.Portfolio n Planning.com -- Jim Lear Source: BP Statistical Review Of World Energy, 2010Conclusion: Conclusion Normal market conditions can cause very large price swings with almost negligible production or consumption changes Vast increases in Chinese oil consumption are likely the reason for significant price increases Significant weakening in the dollar’s purchasing power can also affect Prices are not being manipulated by speculators These conditions can occur in any market and they might appear as market bubbles Jim.Lear@portfolionplanning.com www.Portfolio n Planning.com – Jim Lear