Jack Yetiv

Stocks to Buy Before the Oil Bubble Bursts

It hasn't just been the Canroys. It's been all the oils I have been following (about 20 equities in total).

I think the reasons are: (1) drop in oil and gas prices yesterday and today, (2) fear in the days last week that oil was a bubble and was going to fall.

I know of nothing specific other than the above.

Anybody else have any ideas?

Jack

A Selloff Follows the Out-of-the-Blue Rally - Not Good

I would caution readers on one thing--I think that when we get around to recovering from whatever bottom we hit, it will be a long recovery due to the triple negative effect of the housing crisis, the credit crisis, and significant inflation causing real incomes to drop.

This will be a "U" recovery with a long time (more than several years) until we see Nas 3000 or DOW 14000 or any previous records.

Jack

The Crude Oil Price Disconnect

I continue to be amazed by articles that speak on this issue and yet fail to realize that "bubbles" occur in many (maybe even all) "commodities" when neither the demand nor the supply is artificially controlled. For example, we get "housing" bubbles.

But oil is simply NOT such a commodity. OPEC accounts for 40% of global oil production, and they have shown great ability to cooperate of late in controlling demand. Saudi Arabia has made it clear that it is VERY happy with oil at $120, and nobody--including floor trader Mr. Dicker--can possibly argue that Saudi Arabia ALONE can FULLY control the price of oil, regardless of what Mr. Dicker or the author think the demand is.

What would happen to oil price if SA decided to decrease its production from 10 million b/d to 9 million? 8 million?

And that's our "friend" Saudi Arabia.

What about Iran's Ahmadinejad? Venezuela's Chavez?

Jack Yetiv