What's next for oil?
We see every night on the news the BP deep-water disaster, and it's immediate consequences. Rubins has a good summary in the G&M.
As Rahm Emmanuel says, we don't want a serious crisis to go to waste. So how do we make money here? Oil prices and most company stocks should recover (except BP/RIG) with the global economic recovery and supply shortage. Who are going to lead the way out?
Note, TU and RIM are doing OK in a down market, but I notice there are days when both were relatively weak. I suppose we should diversify a bit from the wireless telecom sector. So I'm open to trading one prob TU.
posted by Junk Bonds @ 6/02/2010 12:56:00 PM
1 Comments:
Good call on BP. I was lucky to have only traded it. I believe the full course of political pressure against the companies involved have only begun.
Off shore, deep drilling is dead for a while. I would stick with large cap diversified names like SLB and BHI but would avoid HAL because of its involvement in the spill. Read somewhere that SLB business in the Gulf is less than 4%.
What a complete mess this oil spill is. No doubt the conservatives will use this and try to pin it on Obama.
Telus has shown strength and I'm ok with unloading it at this juncture.
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