cynic69

Stock Markets Nearing Important Bottom

Kunal
You sound like a guy who is long this market. Don't you realize that neither the economy nor the market can survive with energy prices at this level? Wait you say, it's doing OK so far. Not true. The refiners are still refining oil they bought for $95. This combined with the fact that Bernanake and Paulson are trying to save the White House for the republicans by flooding the system with liquidity has delayed the coming market crash. I'm afraid that your past experience is worthless because the economy is in its peak oil death spiral. I think that after the auto industry is cut in half and the airline industry disappears all together most stock prices will be about 20% of their current value. My advice is to sell whatever stocks you own and buy a truck load of puts.

The Global Recession's Here: How to Profit from It

You can bet the the wildeyed stockbrokers in CNBC are already long this market and they are trying to get the sheep to jump on the band wagon as its sliding over the cliff. One thing that Matt didn't mention is the price of crude. We are running out oil and the price is only going to go higher. The effects of $100 oil have not yet been felt by the world economy. I believe that the high price of energy will mean that equities are now only worth half what they were in October. I think if you traders want a really good bet you will buy 500 put contracts on the Qs, strike = $36, expiration = May. This $2500 bet could turn into $90,000.

I'd like to say this to rustypipes: I agree with you that natural gas is a fantastic way to go for an interim energy solution. Natural gas pipe supply lines are everywhere. Every service station could have a compressor and just change your empty tank for a full one. I heard Boone Pickens say the same thing. As for your disdain for the Prius I think you missed the point. The Prius may not be cheap but that matters less than the fact that it dosen't pollute the atmosphere as much as other cars and it helps preserve what small amout of light sweet crude we have left. I think that as more hybrids are produced they will be cheaper to build and even more efficient to drive.