andyn

How the U.S. Financial Crisis Resembles Japan’s 'Lost Decade' - And How to Play It, Part II

I think OIL is the new gold. Even though its volatile, it is still in an uptrend for many years to come.
There are many factors to keep it going up:-
1. As the dollar value keeps depreciating due to the Fed's massive liquidity, both OIL and gold goes higher.
2. But oil is better since its a resource which is consumed and cannot be reclaimed unlike gold which has been accumulating over centuries.
3. Demand for oil is still increasing from the developing nations, whereas supplies are depreciating a fast rate. (Read "Twilight in the desert" about the issues with Saudi oil fields which supplies 25% of the world's oil)

The only thing that would break oil is some alternative energy source... but that is still way out in the future.

I think OIL stays high with occasional spikes and drops.
Buy USO as well as OIH and sit back and enjoy the ride.