samadams

In Light of Peak Oil, Financial Diversification Is a Bad Idea

Great article and great recommendations for diversification MERK and Prudent-wish the expense ratios were lower. Don't fight the trend and it's ok to put all your eggs in one basket, just really keep an eye on that basket. When or if the fundamentals change I'll move out of energy.
I have a friend working off-shore in the gulf and the challenges are enormous. Decades of underinvestment, rusted out rigs, lack of rigs, rising cost for steel, lack of skilled workers below retirement age (seems no one wanted to study geology or petro eng the past 20 years) and really making him nervous, hurricane season starts today. There's probably still plenty of oil out there but it won't be cheap (below $100). The National Oil Companies control the majority of the output and they are going to charge whatever they can to continue to fund their state welfare programs. This is their main source of revenue. I can't blame them. I feel like they are holding us hostage.
I recommend reading Prize and A Thousand Barrels A Second for a better historical understanding of what we're dealing with WRT our reliance upon oil to build and maintain industrial societies and the history behind it. I enjoyed reading the posts even those I disagree with. Keep them coming.