If you didn't see the T. Boone Pickens interview on CNBC last week, it's worth watching.
Click here to watch.
Pickens' main point is that the world can now produce 85 million barrels a day, and that's it. Global demand is 87 million barrels a day and growing. It's not the evil oil companies or the futures market speculators that have pushed gasoline to $4 a gallon in the US. It's basic supply and demand.
Those who think that oil price is in a bubble stage now, and think waiting for the bubble to burst, you will be disappointed; because this is no bubble, the high oil is a reflection of supply and demand.
Listen to my advices:
1. Avoid those stocks that heavily rely on oil for their operation.
2. Keep some oil services and oil exploration stocks in your portfolio.
3. Open a super mini oil trading account for opportunity trading. See here.
4. Buy gold ETFs on dips, as gold moves in the same direction as oil in the long run.
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