Tuesday, May 6, 2008
A report out this morning from Goldman Sachs states that their analysts think oil will "likely" trade between $150 and $200 in the next 6 to 24 months.
My favorite quote from the report:
``Unfortunately, we do not think the energy crisis will be solved by finding and punishing the big bad speculator.''
(Well, common sense won't do a bit of good. Someone is going to have to hang for higher oil prices, and it sure isn't going to be one of our "Leaders", so I expect to see a couple of speculators arrested and charged before long...)
KUDOS!!!! to Goldman. Unlike the other "Wirehouse" or big retail firms, Goldman's clients are the most well informed (and wealthiest) folks on the planet (G-d, its good to be King!), so Goldman's business is not predicated on misinforming their client base, as a UBS, or Merril, or Smith Barney is (not that they wouldn't if they could, it just wouldn't work for them). Publishing "Wishcasting" (as opposed to well reasoned "Forecasting"), like the retail firms do will not work for someone like Goldman Sachs, and it won't be long before the other firms roll over dead and follow suit. At that time Oil will be close to a "sell" and if you follow the advice of the retail firms you will get your bottom reddened in front of the class.
Yours for a better world,
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 5:13 AM