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:
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
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.
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.
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.
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