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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bmillermn who wrote (947)	5/20/2009 3:38:14 PM
From: bruwin	Read Replies (1) \| Respond to of 4720

I take your point regarding “The oil and gas sectors plus commodities are great places to be.” I’d say we are in the calm before the storm regarding energy. Currently industries are at low production due to general recessions. So the demand for energy, and oil in particular, is down. But once things get moving again oil will be in demand and we’ll be back to where world demand is now about equal to world supply, in terms of the oil that’s been easier to access. To a certain extent, much the same can be said for essential metals and minerals. The problem has been the relatively cheaper and more abundant energy in the past. Increase in fuel and energy supply has lead to increase in population, and all that goes with it in terms of what’s required to feed, clothe and satisfy the increasing numbers from relatively finite resources. The ultimate challenge, going forward, will be to balance the demand and supply equation. An increasing population is like the forward momentum of a super tanker. It takes many miles before you can slow it down and stop its progress. In much the same way it will take many years and possibly generations before there’s a balance between the size of world populations, what they require and what can be supplied from ever dwindling resources. No wonder there’s been an increase in the search for alternative energies, as well as greater awareness regarding the way we’ve abused our natural infrastructure.