These Guys Are Costing You a Fortune
This week, the “Slap in the Face” Award goes to the business media for its coverage of the oil and energy slump. Let’s call it the “How the News Prevents the Average Guy From Ever Making Any Money Slap in the Face” Award.
I get up every morning around 5:30 or 6:00 and dutifully turn on the European Wrap-Up and then the first hour of Squawk Box. This, at one time, was my favorite hour of TV. Now, it’s watered down to the level of most TV - junk. But it still has a few good guests on during the first hour.
But the coverage of the current energy slump has gotten so bad and is so misdirected that I can’t watch it anymore.
To listen to these people on oil and energy, most of whom I am sure have never traded a stock or a future, you’d think someone has come up with a solar-powered engine that not only doesn’t require fuel but also doesn’t need any petroleum lubricants either!
Let’s get this straight.
Everything about our lives runs on oil and, increasingly, natural gas. Everything: transportation, home heating and electricity, food production, manufacturing - you name it, it runs on or is made from oil or gas.
Do these dunces think oil will somehow go the way of Yugos or film for cameras?
Yes, we have a glut and prices are dropping, but believe me, the energy folks will find an excuse to run prices back up. They always have, and every time it has happened, no one can make any sense of it. But prices always have - and this time will - go back up.
Here’s the real dope. Only once every decade or so does an industry or sector of the market get slammed the way energy is being slammed now. Back in 2009, it was the banks, oil and housing. Those were giveaways, too, and all returned a small fortune between then and now.
And fortunes will be made from this sell-off too.
This is a no-brainer. The best energy companies in the world, with 20- to 30-year estimates of growth and development that are literally cast in stone... some at 20% and 30% discounts... with great above-market dividends... and some have great bonds at big discounts, too.
We’re talking 10% to 12% a year from great BB and BBB bonds.
And the TV news talking heads are presenting this like it is some kind of disaster.
This is the best opportunity in years to make a mountain of money. It is being served up on a silver platter, again, but the networks seem to be hell-bent on turning yet another chance to make you millions into a “scare the hell out of them so they don’t change the channel.” And that is what TV is really about.
Start retraining yourself to see every disaster, sell-off and market collapse as a buying opportunity. The easiest way to do that? If the TV talking heads are slamming it, it’s a “Buy.”