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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Gary Burton who wrote (51930)	9/27/1999 1:51:00 PM
From: Think4Yourself	Respond to of 95453

I find your logic plausible BUT it appears inflation is leading the short list of concerns the market is having. The rising price of gold is verifying this. Energy prices are currently the sole component that is causing the inflation. If one wants to hedge against inflation, buying the oil producers appear to me to be by far the best way to do it. This is especially true at current prices, yet the industry is experiencing declines in stock prices this past week. The last thing you want to do is sit on cash for any length of time, because it becomes worth less every day. It has been argued that EnP's will, at least initially, go down because the rush for the exits is irrational. I can't argue with this either as I view the market as highly irrational. My point is simply that the smart money will be buying the EnP's on dips, especially when earnings are so easy to calculate. The EnP's are doing well, and will continue to do well in any environment where rising energy prices are causing the market woes. Even if one believes the economy will slow, oil consumption will not be significantly affected because the US is now a service-oriented economy. High Tech is what will get slammed by a slowing economy because there will be less money available for technology upgrades. Just my $.03 worth (it's adjusted for inflation).