Ed, the oil story is over for any time horizon I can dream up. There is no reason to chase commodities in this environment, not peak oil myths, not the coming drop in the us dollar, and especially not "compelling valuations" in the equities.
We just lived through just another energy cycle, nothing more nothing less imo. I can easily see an environment where crude stays rangebound for the next 2 years.
Message 24874481
I bit the bullet, sold my last bits of BEXP, TXCO, DWSN today. My attempts to bottom fish off the supply disruptions of Ike were mistaken, plain an simple, and lesson learned. I'm expecting a market bounce, but I'd rather be in other things.
Unfortunately, I'm beginning to doubt alternative energy as well. Even under Obama, with subsidies, etc., projected demand will get slashed with weakening energy prices, especialy coal. Jury is still out, as coal is one of the less affected commodities todate. |
