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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (2290)	10/12/2000 10:55:37 PM
From: Dayuhan	Read Replies (2) \| Respond to of 10042

Of course Saudi statements will effect oil prices. I didn't say that they wouldn't. I said that I didn't expect to see any effective effect to curtail production or refuse to ship oil to the US. Just as in equity markets, commodity price fluctuations induced by statements tend to be transient, especially if the statements aren't backed up with action. Oil will go up for a while; that's not going to break our economy. Middle East crises come and go, oil prices go up and down; the two are often related. I remember the days when oil was cheap, and X and I were announcing to the multitudes on SI that oil would rise again and oil-service companies were a steal. I don't think very many people listened, but I did pretty well on HAL and SLB. Remember that next time oil goes down for a while. It's not exactly rocket science. If an entire sector is trashed due to cyclic economic conditions, strong, well-managed companies in that sector are worth buying. If, say, FDX has a bad quarter or two due to high fuel costs, and the stock tanks, it's worth a fling. Oil won't be high forever, and the company isn't going to go away.