Resource concentration
We still hold oil and gold and uranium, and they have been dropping for various reasons. I don't have much intuition about these sectors/industries. Is the bottom in sight? Is there a turn in near future? should we get out?
Would love to hear some insight here.
posted by Junk Bonds @ 5/14/2011 11:17:00 AM
2 Comments:
Actually we sold RBC gold to fund the Cameco purchase. So currently the club holds SLB, CCO, and COW. Commodities have taken a dip of late yet oil price is still around $100/barrel. Unfortunately even when commodities were running at the beginning of 2011, stocks like SLB and large cap gold didn't follow the price of the commodities.
Seems like we're at an inflexion point here with regards to commodities and the markets in general. Energy has outperformed the overall market by a huge margin since the start of QE2.
Political appetite for QE3 seems limited at moment with this impasse regarding the debt ceiling, so we should perhaps cut our losses with SLB at the least.
I still like the CCO idea and uranium story long term, but there's a short and medium term before we get to long term......and the same with COW
How about long utilities and short the overall market?
I agree SLB should be the one to go, better long term dynamics for COW and CCO. I'm not sure now is the time to short the market. Are we even able to short in our account?
I'll try to find some other ideas this weekend.
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