How you can thrive when oil cost $200 a barrel...

I recently picked up this book " The Coming Economic Collaspe" by Stephen Leeb....which he proves that with today's escalating historic prices of oil and gasoline, the U.S. economy is on the brink of the biggest crises it has ever faced...that for most people, the result will be severe financial hardship...but for others, it presents a once in a lifetime opportunity for investors to become incredibly rich. Its a good read for me. He reveals several things which includes skills which investors need, how to make a fortune in oil, gold, & other inflation-sensitive sectors, today's leading alternative energy stocks & more importantly, steps the government must take to immediately to avoid crippling energy shortage. I summarise below the recommended porfolio against a backdrop of escalating oil prices & high inflation or deflation if oil prices rises too rapidly.

Inflation Hedges: 50%(inflation) or 20%(deflation)

• Precious metals (gold, silver, platinum stocks)
• Energy (oil services companies, energy funds, alternative energy stocks)

Chindia: 30% (in any case)

• Large Cap American companies expanding into China & India

Deflation Hedges: 20%(inflation) or 50%(deflation)

• Zero coupons bond

Write to me if you want to know the companies or symbols against the recommended porfolio.

May Trades Reviews

ACH covered call positions got called out this month for a 6% gain. No complains here. INTC share prices are now above their purchased price which is well just great. CSCO, DELL, NVDA & GG are still below their purchased price but are climbing back up in tandem with the overall market sentiment. In any case, secondary calls were written & income generation continues. The rule remains....no stocks will be sold for a loss. These stocks are viewed as assets which allow income to be generated. The May N225 19000 calls options expired worthless as the Nikkei 225 index was no where near 19000 on expiration day(2nd Friday of the month). Same goes for the May ER2 660 Puts which expired worthless as the Russell 2000 index closed at 823 on expiration day(3rd Friday of the month). Jun 19000 N225 & Jul N225 20000 Calls & Jun ER2 630 Puts were written to achieve the income target for Jun(target is 4% against account). Overall another great month in May. Looking to open new trades for ACH & Aug N225 calls.