Monday, September 8, 2008

Tough Stuff

The intraday turn around for the energy equities is nothing short of terrifying to me.  It would seem that the world economy is pretty sick.  Trying to guess the bottom is tough stuff.

So I bought some of the stuff that is terrifying me.  You gotta take positions when things are getting destroyed, and this would meet that definition.  But I had to hold my nose while I did it.

To say that it has been a tough month on energy equities is an understatement like no other.  But "this is the business we have chosen", and here we are.

Having fun yet? Me neither.

Mentatt (at) yahoo (d0t) com

4 comments:

Anonymous said...

Things will sink until oil gets to the point where things began to really hurt. My guess at the bottom is $78/bbl. Then the pressure will be off an back up we go.

Coal guy

Bureaucrat said...

If we are in a deflation the size of which we haven't seen in 80 years, and the world economies are still "coupled," we may not see oil go back up for a long, long time. The phony housing wealth bubble has made itself apparent. The global poor suddenly being able to afford cars and air conditioners could be equally as fake.

Greg T. Jeffers said...

Coal Guy:

I am not long or buying the commodity, I bought the equities. Typically (HA!), the equities lead the commodity by a couple months.

Greg T. Jeffers said...

Bureaucrat:

That is something to be fearful of... Still I don't think deflation is a world wide phenomenon, but a U.S. one... Sometimes I wonder if that matters.

Still, I won't be patient with this trade. It has to turn soon or I am out of here.