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INVESTMENT STRATEGY – ALL EYES ON CRUDE OIL
- By Terry J. Atzen
- •
- 22 Dec, 2014
With Crude Oil prices currently just below $60 per barrel, investors are well advised to keep an eye on its price.
This is the lowest price for Crude Oil since the summer of 2009.
Crude Oil is a critical component to our economy and of the economy of the world. It impacts energy costs such as gasoline and diesel fuel and it is the basic ingredient for the production of plastics, fertilizers, synthetic fibers, dyes, paint, detergent, photographic film, medicine, make-up and candles.
And, the impact lower Crude prices is also reflected in most stock indices as the large oil companies are major components of the Dow and the S&P 500.
To add to the importance of Crude Oil and why it is one of the major components of The Investment Compass™, there are the implications for the Russian ruble.
As can be seen on the point-and-figure chart seen below, Crude Oil has been in a free-fall since the beginning of November.
See the latest chart on Crude which shows the new column of Xs added – 12/17/14.
As you can see, buyers have come back into this market.
Here at The Investment Compass™ we do not concern ourselves with “why” an event is taking place – like: “Why is Crude Oil going down in price so dramatically?”
If we watch the newspapers or watch television, we are given many reasons why Crude Oil is going down. In fact, we are given so many reasons, the whole issue only gets even more confusing.
The REAL answer to why the price of Crude is dropping is that there are more sellers than buyers – nothing more than that – simple as that!
And, the question we should be asking is – “How low will it go?” – which relates to that question and the purpose of this blog.
Terry J Atzen at The Investment Compass™ (www.theinvestmentcompass.com)
Weighing-In on Gold and Silver……..What’s the Real Truth
In the past few weeks, I have been amazed by the extreme range of predictions on the price of Gold and Silver (Harry Dent [ www.economyandmarkets.com ] says $750 and Jim Rickards [ www.silverdoctors.com/Jim-Rickards ] says $10,000), so I decided to weigh-in on the subject (without the predictions!).
Let me say first, that this is a great example of why I wrote my book and why I do the work that I do.
Pundits can, and do oftentimes confuse investors. This creates doubt and causes investors to ask, “Who do I believe? Who is correct? “What is the Truth?”, and as the result, end up doing nothing when their personal instincts say otherwise.
My work is about “What Is” – logical, simple and easy to understand.
As usual, my analysis begins with an index, in this case, the Index for each of the metals, then the respective ETFs as well as the Inverse ETFs for verification.
And, at the end of this blog, I will take a look at the Gold/Silver ratio that many folks like to monitor.
First, the Gold Index:
Update on Gold
Gold has been a “hot” topic in the media so I decided to check-in on the subject – showing you what is really happening.
First of all, the Gold Index: (If you click on each chart it will make them larger)