I am now used to the barrage of news reporting about the current condition of oil price. For the last few weeks, this topic has been featured in the Economist, CNN, businessweek, bloomberg, blogosphere, you name it. However, I don’t see many people cover it in connection to Indonesia investment landscape. In this post, I will try to put together my back-of-the-envelope thinking. Hopefully, it will stimulate further thoughts of yours. 🙂

Most of the news that we see everyday are not really important enough to pay attention to. You can miss them and it won’t kill your investment portfolio. Some of the examples are news such as “Foreign are buying, IHSG up 80 points” and “Market is out of gas, correction is due.” A lot of this kind of news are the type that the market wants to go up, therefore it is going up type of news. It sounds smart, but there is no meaningful content. Blame it on the media which cares about the excitement to generate more readership. Sometimes I find it amusing that people like to give the market a personality. It seems that the market, which is actually an index of group of stocks, has life by itself. However, the dropping of the oil price is not one of those news. It has some implications to how business will perform. Anyway, it’s just an interlude.

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