InvestBaboo

Barron's Banks on $100 Oil

On a per capita basis an American consumes 52 barrels of oil a year -- the highest in the world. Indians consume 1 barrel per person per year and China 2 barrels per person per year.

If the U.S. consumer on the average cuts his consumption by 2% that is equal to 1 (appx) barrel of oil per person per year. That frees up about 250 million barrels of oil per year.

It is the math above that pundits forecast when talking about China and India's demand increase. When the U.S. consumer cuts his consumption the Saudis will choke in their sleep. $100/barrel oil is not optimistic talk -- it is a reality that will happen.

Credit Card Spending on the Global Rise

Hi V Winner:

I have been reading your posts, made an investment in Visa, and paid off very well. I also made an investment in MA and it paid off very well too.

The question is V can't run forever because ultimately every stock is guided by hard revenue numbers and profits. V has indicated 11-12% growth. The market cap of V has to correspond to these revenue numbers and it just can't go up forever unless of course the revenue and profit numbers go up at a dizzying pace.

When you say V will reach $300 can you shed some light on the numbers that you are twirling around so that I feel safe with V over the longer run?

Thanks,