Watch the following video…
So, how to play it? the tickers are (USO), (DBO) and the double return (up or down) is the (DXO).
Right now, I find it hard to be investing in stocks. Financials are out, consumer discretionary will get hit and until we know what the stimulus is, jumping into infrastructure blindly is real risky.
So, that leaves certain commodities and I think the most value here is in oil..
Disclosure (“none” means no position):Long DBO, DXO
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3 replies on “Eric Bolling: "Oil Should be $75 to $80"”
Aren’t you a value investor? You seem to be extremely concerned with catalysts and near-term price action lately…
Not disagreeing with the oil play, I just think you’ll be missing out on some great opportunities in equities right now if you’re staying away.
Charlie,
I see the recession going through 2009 and possibly getting worse…
that being said, equity “deals” today will most likely remain for the year, no rush to buy
i see the “value” being in oil as i see it substantially higher by year end..
I’ve always been told by our greatest investment philosophers that timing should never be considered when making a value-based purchase with a high margin of safety.
You must also consider that history has repeatedly shown us that prices rarely track perfectly with the underlying economics, but trend around them in the long run.
So, although we expect unemployment and consumer spending to worsen, these (or worse) expectations may be built into current prices. The fact that we don’t know the size of the stimulus doesn’t mean we won’t get one, either.
I say take good values and margin of safety any time you can get them.
You always talk about considering as many scenarios as possible. Why not consider a drop to 10% unemployment, record-low consumer spending, and a weak stimulus accompanied by a 15% increase in prices?
There’s a reason Buffett is cavalier about near-term prices and has invested 100% of his non-Berkshire net worth in stocks.