Bullish On Oil? Why The Oil Bulls Will Come Back To The Market

Why The Oil Bulls Will Come Back To The Market

Date 19/08/2008

The Right Side

Ben Traynor

"It’s the fundamentals, stupid."

That’s the reason commodities watcher Garry White gives for why the oil price could soon be on its way back up.

Garry’s been riding a rollercoaster this year. It was only last month that oil set a record high of $147 a barrel.

Do you remember? Oil bulls (of which Garry is one) were having a field day. Today $147, tomorrow, who knows! $200? $250?

It all looks so very, very different now, though, doesn’t it? Oil has since fallen to below $112. It’s been like riding the Big One at Blackpool Pleasure Beach.

Now it’s the turn of the bears to make wild speculation.

"Where’s oil going next?" they’ve been crying. $100? $50?

Of course, no one can know for sure. You could try gazing into a crystal ball... but all you would see is your own perplexed face reflected back at you in the glass...

Nevertheless, Garry remains a long-term oil bull.

"Fundamentals," he tells me, "Are the reason oil has dipped. The economic slowdown has dampened the price. But fundamentals are also the reason it will go back up."

Find out why Garry believes you should get ready for the next oil price surge.

What Manraaj Singh has in common with Madonna

Garry White has noticed something interesting.

"You know those people who are known by only one name?" he said this morning. "Like Madonna. Or Pele. Or Boris?"

"Yeah?"

"I think Manraaj is one of those. Put his name into Google..."

He’s right, as well. Do a search for ‘Manraaj’ and our man dominates the results.

Looks like our Profit Hunter editor is well on the way to celebrity status. Look out for next year when he’ll be releasing his very own scent...

How to avoid big losses

"When the ship starts to sink, don’t pray. Jump."

Wise words there from Max Gunther. Gunther wrote The Zurich Axioms, a book detailing the principles through which the Swiss became some of the world’s most affluent people.

"Getting stuck in a losing venture is the worst money pain there is," writes Gunther. "When the ship starts to sink, don't wait until it is half submerged."

Gunther’s solution? The trusty stop loss! If a share’s losing you money, set a level at which to close the position.

But where to set that level? It’s a problem Fleet Street Letter investment director Theo Casey has been grappling with.

Read on to find out more about how to protect your portfolio from heavy losses.

Until tomorrow

Ben Traynor

Editor Selected articles:

Theo Casey on how to protect your portfolio from heavy losses.

Garry White on why investors should get ready for the next oil price surge.

The Daily Reckoning — Preparing for the big hullabaloo

Today, we take a break. Yes, dear, dear reader...there will be no reckoning today. Nor for the rest of the week. Elizabeth needs help preparing for her big hullabaloo. We’re expecting about 150 people for a soiree on Thursday night, about which, more below...

Before we leave you, though...we have just a couple thoughts...

We’re sticking with our views and our investments — either until we’re proven wrong or we go broke, or both.

You can read the Daily Reckoning in full here.

P.S. If you enjoyed this article you can find out more about our free email, The Right Side by clicking here.

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