Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Monday, May 21, 2012

Are You In On the Correction in Oil and Gold Stocks?

Thursday, October 12th, 2006
By Michael Lombardi, MBA for Profit Confidential

Oil and gold prices have been correcting sharply over the past month. While some say the bull markets in these two commodities are over, I’m in a second camp that believes we’re witnessing a classical price correction for oil and gold. In my opinion, too many investors and speculators got in too fast on both commodities. And that spells opportunity for you.

Demand for oil remains strong. Sure the speculators might have pushed oil too high at $70 U.S. per barrel. But, we must remember a few items on the demand side for oil: China’s economic engine continues to roar. The country is demanding more and more oil each year.

And, speaking of engines, I still haven’t seen a gas alternative vehicle that GM, Ford, or the other big auto companies are forging ahead with. It’s been said that we only have 100 more years of proven oil reserves in the ground. Until alternatives to gas and oil are developed, the demand will continue. Throw in the occasional foreign oil producing country having political issues (or demanding euros for their oil), and supply could easily be cut.

Gold’s in a different boat than oil. Gold is looked upon as a safe haven for money in times of weak fiat. (Fiat is paper money.) The most widely recognized currency in the world since the end of World War II has been the U.S. dollar. In fact, the U.S. dollar has become the peg upon which other currencies are valued. The burgeoning debt of U.S. governments and its citizens isn’t getting smaller. Nor is the U.S. trade deficit. At what point will foreigners stop accepting the greenback for their goods… at what point will foreigners get so concerned about debt in the U.S. that their demand for U.S. bonds starts to decline? In my belief, it’s only a matter of time. May not be today, may not be next year. But, like all great currencies in history, eventually the shine comes off and gold rises in price. It’s been happening for 5,000 years. Today is no different.

Technically, from what I can read of the charts, both oil and gold remain in bull markets. The long-term upward trend these two commodities started some years ago remains intact.

There are plenty of good quality oil and gold stocks out there that could be had for a song today. Their prices have corrected… the speculators are fleeing… and a great opportunity may be presenting itself for patient, wise investors.

Next Post:
Previous Post:

Tags: , , , , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorMichael bought his first stock when he was 17 years old. He quickly saw $2,000 of savings from summer jobs turn into $1,000. Determined not to lose money again on a stock, Michael started researching the market intensely, reading every book he could find on the topic and taking every course he could afford. It didn’t take long for Michael to start making money with stocks, and that led Michael to launch a newsletter on the stock market. Today, Michael only employs the top market analysts and editors. Some of our recommendations have posted gains in excess of 500%! Michael has authored and published over one thousand articles on investment and money management. Along the way to building Lombardi Publishing Corporation, now with over one million customers in 141 countries, Michael became an active investor in real estate, art, precious metals and various businesses. Readers of the daily Profit Confidential e-letter are offered the benefit of the expertise Michael has gained in these sectors. Michael believes in successful stock picking as an important wealth accumulation tool. Married with two children, Michael received his Chartered Financial Planner designation from the Financial Planners Standards Council of Canada and his MBA from the Graduate Business School, Heriot-Watt University, Edinburgh, Scotland.Follow Michael and the latest from Profit Confidential on Twitter

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer