Thoughts and Things
December 4th, 2008 Posted in Economy, Investing, Music | No Comments »In my basic surfing, I came across sad news of sorts. Shirley Manson’s mother died. It is strange that I actually was saddened by the news, considering I have never met Shirley or her family. Yet there it is. It does make me a bit sad to know that her mom has passed away. I guess it is easy to feel for someone who’s lyrics and music have been a huge part of my life for more than a decade (which in a way is amazing)
Anyway, there it is.
In other news.
It is getting close to the point where you should think about getting back into the stock market if you, like me have been sitting out for a while. The moment the dow drops below 7500 in earnest, it is time. Below 7500, the market is below the historic trend line.
In the mean time, it seems that now is a great time to get into oil. With a barrel of oil selling at or below 50 dollars, it is a steal. I believe the market forces are such that oil should be traded at or around 100/barrel. Why is 50/barrel too low. There are a multitude of reasons for this. First, demand outstrips supply. This equation has not changed, even with the downturn in the economy. Second, with China and soon America spending more than 1.2 trillion dollars combined on infrastructure projects, demand for oil should increase soon.
Why is the price so low. Two reasons. The election. Christmas season.
Yes, that is right. I believe that there has been market collusion to push the price of oil down for political gain. And by the end of the year, after the Christmas season, I suspect that the price of a barrel of oil will start to increase again. Back up to around $100/barrel.
Thus, purchasing oil at $50/barrel could offer a 100% return on your investment in a very short order.
Gold is a bad investment.
Euros, bad.
Bonds, bad.
Other than that, I don’t have a clue where to put your money. Which is one of the reasons I am in cash right now.
Anyway, I am off to bed.
