Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: ItsAllCyclical who wrote (77688)	11/1/2000 1:36:30 PM
From: Sharp_End_Of_Drill	Read Replies (2) of 95453

Jim & Slider - It's all about stupid people - stupid Couldn't be more correct. I had one of those epiphany moments several months ago talking to an analyst at Enron who does risk hedging. She was explaining their approach to me, and I've come to realize how smart they are. Enron takes long & short positions in commodities, it trades commodities, and to my surprise they are also long & short stocks in the market. She explained their positions are always equal values long and short, like straddles. In that way they are becoming like the house in Las Vegas, whether stocks go up or down (provided they move enough to cover spreads) the house makes money. Enron is becoming the house, so if I were you I wouldn't bet against them. Any way, to make a long story short her point was "there is a lot of stupid money in the market". Their mission is to remove that money from the stupid people in the lowest risk fashion possible. The main lesson I tried to take away was to realize that yes, there is a lot of dumb money chasing stocks. How can I profit from it? Good luck to you, and think about how you can remove some of the dumb money from the market. Sharp

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