Caterpillar Sites Commodities in Cutting Forecast

The video discusses Caterpillar's reduced 2016 earnings and sales forecasts due to decreased demand, highlighting broader challenges in the industrial sector. It examines the impact of commodity prices on global economic trends and the role of crude oil in financial stability. The discussion also touches on Caterpillar's history of managing investor expectations and the implications for the commodities and mining industries.

What is the primary reason for Caterpillar's lowered earnings and sales forecasts?

• Increased competition in the market

• A slump in demand for their products

• New government regulations

• Rising production costs

What broader industry does Caterpillar's situation reflect?

• The commodities and mining industries

• The retail market

• The technology sector

• The healthcare industry

How has Caterpillar's stock been affected by their guidance adjustments?

• It has increased by 10%

• It has remained stable

• It has decreased by approximately 3%

• It has doubled in value

What is one significant risk associated with low crude oil prices?

• Increased inflation

• Financial instability

• Higher interest rates

• Decreased consumer spending

Why is the current crude oil price considered less risky than when it was at 25?

• It indicates a stable market

• It increases industrial demand

• It reduces financial instability

• It leads to higher inflation