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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: prosperous who wrote (113575)	11/17/2008 2:05:27 AM
From: energyplay	2 Recommendations Respond to of 206336

Hi hgr - I would agree the chart looks bearish, having touched near 20 USD 3 times recently. One problem that makes it hard to predict the future - Hedge funds and sophisticated investors discovered the energy royalty trusts a few years ago, and have owned them for multiple reasons - high distributions, to hedge shorts in energy and materials, and to reduce volitity. If the hedge funds have more redemptions, and have to dump more stock of close down, this can push these stocks much lower. If stocks in general go lower, especially dividend paying "blue chips" with pleanty of cash, many investors will prefer to buy the blue chips (like Warren Buffet has bought COP) before the royalty trusts, because of liquidity and margin reasons. I don't have much of a crystal ball for future oil or gas prices. We may be a long way from a bottom or the end of wild volitility. Things may get much worse. So I am going to have refrain from any assesment of direction.