Black gold

[DimPrawn]

I like this bit:

Theoretically, when the economy has recovered, the Bank of England sells the bonds it has bought and destroys the cash it receives. That means in the long term there has been no extra cash created.

Yeah, of course, they will.

[b0redom]

I don't know whether the non-baby boomers have realised this, but this is your chance to make a killing.

Forget property, anyone not buying Shell Plc with oil at $40 is f*** bonkers.

Why's that then? I can see the sense in buying oil futures, but if the price of oil is on the way down, then surely so are the fortunes of the oil companies? And why Shell particularly? Why not BP etc?

[alphadog]

I don't know whether the non-baby boomers have realised this, but this is your chance to make a killing.

Forget property, anyone not buying Shell Plc with oil at $40 is f*** bonkers.

Do you reckon? Shell's share price performance over the past 10 years has been fairly awful. What makes you think that the next 10 will be better?

[BlasterBates]

Why's that then? I can see the sense in buying oil futures, but if the price of oil is on the way down, then surely so are the fortunes of the oil companies? And why Shell particularly? Why not BP etc?

because BP is in prison

https://en.wikipedia.org/wiki/Deepwa...zon_litigation

i.e. they're an open target for bounty hunters.

[DimPrawn]

With oil low, the oil companies are going to lose a lot of money, first thing to be cut will be the dividend, which will crash the stock price.

I would be investing in "green" stuff and "climate change" industries as these are fed tax payer subsidies. They can make a windmill that doesn't turn and still be in profit.

[BlasterBates]

Do you reckon? Shell's share price performance over the past 10 years has been fairly awful. What makes you think that the next 10 will be better?

....because oil has been "done". It might drop a few more dollars, but that's it.

Commodities are cyclical, they turn down much more. Basic economics, the further back you are in the supply chain the more cylical your business is.

A 2% decline in consumer goods leads to a 10% decline in capital goods which leads to a 30% decline in basic commodities.

Something you learn in Economics. I've made up the percentages, but you get the idea. All commodities have been hammered over the last few years. They'll recover in unison.

Now is the time to start investing in commodity stocks....They're at rock bottom.

As for BP the Americans have declared open season, they're facing litigation from all sorts of bounty hunters.

[alphadog]

I like this bit:

Yeah, of course, they will.

Yeah, much like ZIRP was an emergency, temporary measure... 6 years ago

[alphadog]

Now is the time to start investing in commodity stocks....They're at rock bottom.

One the best investments I ever made was buying palladium bars in Apr 2009 when palladium was at 200/oz. Sold them a few years later at 800/oz. Today palladium is at 600/oz... doesn't feel like rock bottom to me

[BlasterBates]

One the best investments I ever made was buying palladium bars in Apr 2009 when palladium was at 200/oz. Sold them a few years later at 800/oz. Today palladium is at 600/oz... doesn't feel like rock bottom to me

http://www.nasdaq.com/markets/copper.aspx?timeframe=5y

http://www.nasdaq.com/markets/silver.aspx?timeframe=5y

http://www.nasdaq.com/markets/gas.aspx?timeframe=5y

http://www.nasdaq.com/markets/gold.aspx?timeframe=5y

[Jog On]

The stock markets are looking ugly today - key support levels giving way and a lot of red:

Dow Jones Industrial Average | US 30 Index (DJI)