myWealth.com

Why Oil Will Head Higher

I do agree that stock rallies tend to lead commodity rallies overall...and this would include oil. Oil is just a safe longer term bet in my view. You may or may not have a "need" to buy stock tomorrow...but you will be using oil/gas and oil based products tomorrow and the next day, etc....and so will billions of others. There's the fundamental driver. An undeniable demand.

Don't get me wrong, I'm buying stocks here too (in the form of ETFs..all cash, no leverage) but also bought up oil in the 40's through its tracking stock (USO) as I prepare for the coming economic recovery and higher prices to come.

That's also why guys like Jim Rogers have oil as one of their top picks to buy in 2009. It's got the best fundamental "bet" of most financial assets out there right now.


On Jan 06 01:49 PM zeronimo wrote:

> of course Oil will head higher because it is cheap right now and
> people are buying on the news about conflicts between Israel and
> Hamas (or the Middle East in general).
>
> but also expect that people will take their profits as soon the rally
> goes down. so i don't see the gas will go higher long term soon.
> it will go up short-term and i still expect the worst of it.
>
> oil price will be a lagging indicator for the bullish market. what
> i mean is the market will go up first before the oil will clearly
> be bullish long-term again.