Blog Archive

Thursday, May 31, 2007

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.

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