Saturday, November 8, 2008

Oil's Bottom?

"About half of the investors in T. Boone Pickens energy-oriented equity hedge fund have asked to withdraw their money on the heels of losses of about 60% the year, according to people familiar with the matter. Mr. Pickens and his investment firm have lost $2 billion since peaking in late June, Mr. Pickens said Sunday on the CBS program '60 minutes.' ... He has lost an estimated $400 milllion or so in his funds this year", Gregory Zuckerman at the WSJ, 28 October 2008.

Now they want out? Oil looks cheap to me; dollars look dear.

3 comments:

Anonymous said...

I am with you on the oil and gas being at good value.

I for one believe very strongly in decoupling. It is inevitable as the US consumer loses his grip. The Chinese and Indians among others will be ramping demand for all kinds of products and commodities in the coming years. The US will be cut loose to fend for itself as the notion of reserve currency gets wiped from earth.

If you look at the balance sheet of a reserve currency, there is no there there. Any sort of currency reserve exists solely to sop up excess local currency and if reserve currencies disappear in value, local inflation ensues.

Welcome to the world of exploding commodities and self destructing currencies.

Anonymous said...

hello i.a.,

My FIL was crying that oil was down (he has few few stripper wells), and that the stock market was down for him too. A double whammy 4 him. I told him not to worry about oil, just take what theyre giving for now. There is a firm long term floor under oil @ $55 IMO. They'll shut down tar sands below that. I didn't have the heart to tell him what I thought about the scam market.

Anonymous said...

T Boone gettin t-boned...