Thursday, January 18, 2007

Oil and Our Investments

Oil dipped below $50 for the first time in over a year today... and the markets sold off as well... Guess what. The markets will rally solidly nextweek as the true short-term weakness of oil is exposed further.

I believe Jim Rogers is right about oil. It will go to $150. I also believe that cars will some day cost $100,000 each (economy cars) and houses $4 million (3 bedrooms, 2 baths, in suburban Kentucky).

My point is, oil is really weak right now, and stocks love weak oil because it means decreased costs and overhead for most manufacturing, shipping and retail companies. This sentiment could play itself out in the markets next week with a huge rally.

Who knows. I rarely make market calls, but I'm making this one.

By the end of next week, stocks will make history once again. In a good way. And our portfolio will ride the weeklong euphoria to new highs as well.


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