How come the media says the time to invest in something is after a huge move in that something? Like oil.
Now you know I'm long oil. I think with the economy recovering and demand increasing, that oil is going higher. Add in a new middle east war or two, some protests in the same region, denial by the US government that we need more domestic energy supplies, and growing US debt and a falling dollar, I really do believe that we will pay higher and higher energy costs.
Until it creates a recession.
So, yeah. I think oil and oil companies are in a bull market. But they have been for awhile now. I think it's okay to invest in them, but expect pullbacks and consolidation of gains. And be prepared to take a small loss should the next recession hit.
Monday, April 11, 2011
Time to Invest in Oil?
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