We must confess that we have been a little taken aback by the speed of the US dollar decline. In-conjunction the dramatic rise in platinum, silver, gold and the slow rise in inflation premiums (TIPS) leads us to look for investments that most likely will hold value in non US dollar terms.
At the moment we are casting our eyes over oil service stocks (OIH) for this very reason.
Something is happening with OIH. Rising over 50% rise since April, OIH is worth your consideration. What is driving the prices? Possibly the recent rise in natural gas, or the increased rig count, or a combination, or something else?
Clearly OIH, and oil service stocks, have been one of the better performers over the last few months.
Will this continue? Who knows.
I never try to predict or anticipate. I only try to react to what the market is telling me by its behaviour - Jesse Livermore
In the past oil service stocks have been one of the better performing assets during times of high inflation, as demonstrated during the 1970's.
We suspect that we will be holding and accumulating our OIH position for a few years. We also wonder how others are inflation protecting their portfolios?
Disclosure: Long OIH