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Second Wind Investments LLC

|Includes: ABX, DGP, DVN, EOG Resources, Inc. (EOG), SWN
Gold -
it is approximately 15% of the committed capital within our portfolio, we have owned it for many years with a cost average price of $410 an oz. We are not adding at this time. That percentage has served us well though it has tested our patience at times.

Metals stocks we have as a position in are ABX and FCX, a short list you bet but our focus is primarily on energy and emerging growth stocks in China

I would say the next line to cross will be $1500 an oz. and that should happen my guess by June 2010. We may see a correction short term. As nature takes its course to eschew the thundering herd from making too much head way too quickly. But long term_ we go higher, much higher from here.

Geo-political events not withstanding, if in fact war does break out in the Gulf, we will see $2000 an oz. of more.

In that case our investments in oil and natural gas as well as the supply chain partners for that industry will eclipse even our metals positions. I would hate to see war break out between Israel and Iran (which will sweep in many more nations) but it is a calculation I cannot rule out.

We believe in the Peak Oil theory, so if any constriction of supply hits as a result of war, resources will be priced accordingly and that's higher.

One last thing... Watch what happens to NG if/when war breaks out, that should be the catalyst to turn it into a transportation fuel atlernative. That's if HR1835 does not pass before then. 

Now that will be an inflection point? Watch DVN, EOG, KMP, CLNE closely if that happens, they should all do very, very well.
 


Disclosure: Long