We've talked before about the importance of looking for the unseen.
Nearly everyone by now realizes the initial benefits and the obvious beneficiaries of lower oil prices. If utilities companies are capital intensive, and they are, the early beneficiaries of softer energy prices are for the most part the energy intensive.
You know the usual suspects, transportation firms, retailers and restaurants, the drive to work crowd, to mention a few. But at some point, often a bit farther down the road, low prices carry the prospect of whacking the economy with a bigger hurt than many suspect.
It's kind of a reverse law in itself of what's good for the goose ain't always good for the gander.
With crude yesterday falling for the first time in over five years below $50 a barrel, fear about global growth grow. Couple that with other troubles like the Greece situation and a U.S. dollars that seems to have recently discovered steroids, visions of deflation and slow growth have replaced those of any sugar plums that might arrive via cheap gasoline prices.
And that's what more than one well known investor is talking about in this piece recently on Zero Hedge.
http://www.zerohedge.com/news/2015-01-05/jeff-gundlach-if-oil-drops-40-geopolitical-consequences-could-be-terrifying
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