The Screaming Pen

Providing Global Insight, Context, and Perspective

Classic Pen: On Prose and Politics

VIA MEDIA
We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time.

T.S. Eliot, The Four Quarters

Of the events of the 1930’s leading up to the Second World War, no other event inspired young ideologues more than the Spanish Civil War. Young Intellectuals enlisted in droves to fight on both sides, including the writers Ernest Hemingway and George Orwell. The socialist backed International Brigade, funded in part by the Soviet Union, allied with Spanish Republicans in an attempt to defeat the Spanish fascists led by General Francisco Franco in a war that served as a precursor to the war that by 1940 engulfed most of Europe.

A portrait of the artist as a young man

Nancy Clare Cunard, a left wing intellectual living in Paris at the time, sent out a questionnaire to two-hundred writers living in Europe. She posed the following question: “Are you for or against the government of the Republican government of Spain? Are you for, or against, Franco and Fascism? For it is impossible any longer to take no side.” The Anglo-American poet T.S. Eliot responded with a “neutral”, leading to the assumption by Cunard and others that he was either politically ignorant or sympathetic to the fascists. This was not true, however, as he was a believer in “via media” or the “middle way”, a belief that moderation is the only stance that takes into account the shortcomings of human nature. During a debate between T.S. Eliot, a fascist writer, and a communist writer, T.S. Eliot mentioned the following:

“Fascism and communism, as ideas, seem to me to be thoroughly sterilized. A revolutionary idea is one which requires a reorganization of the mind; fascism and communism is now the natural idea for the thoughtless person. This in itself is a hint that the two doctrines are merely variations of the same doctrine: and even that they are merely variations of the present state of things…. What I find in both fascism and communism is a combination of statements with unexamined enthusiasms.”

Eliot believed that these “unexamined enthusiasms” led to irrational decisions during a time when rational thought was completely necessary.

This example of moderation is still relevant today, as we are faced with an increasingly polarized nation where sides are being taken and decisions are being made, sometimes irrationally. It is always important to take a step back and objectively examine issues in context. At thescreamingpen.com we attempt to place news events in context, while providing non-partisan analysis and perspective.

-JPL

Advertisements

August 22, 2006 Posted by | Author: JPL, Business, China, Energy, Europe, Financial Markets, Flat Tax, Uncategorized | Leave a comment

Pocahontas, Marlin Brando, and Me

Shakey Chimes In

 

In 1979, Neil Young and Crazyhorse released “Rust Never Sleeps”, an album held in high regards by both critics and fans alike. From the narrative “Powderfinger”, to the transcendant “Pocahontas”, Young, using rust as a metaphor for inevitable deterioration –see 1981's Re-ac-tor– proves that he possesses the tools to ward off rust, namely his creativity and ability to reinvent himself. Young’s newest album, Living With War, is a powerful indictment of the Bush Administration, addressing the current state of American politics, all the while placing his grievances in an emotional and historic context that is a breath of fresh air, especially considering the mostly sad state of dissent among the newest generation of popular musicians. The resulting album, although lacking lyrical depth at times, is a powerful effort that should remain relevant long after the current administration leaves office, in the same way that his 1971 classic "Ohio", written about the massacre at Kent State, remains relevant today.


Hey Hey, My My, Rock and Roll Will Never Die

While some songs on Living With War, namely “Lets Impeach the President” read like a moveon.org pamphlet or a University of Vermont sociology major’s away message, others such as “Families” and “Roger and Out” leave much more to the imagination, effectively conveying the justifiable discontent that many Americans are feeling right now. Powerful protest songs, which usually convey emotion without being terribly forward, seem to be rare these days, especially among the younger generation. Many of the newer anti-Bush efforts coming from Generation Y, examples being Bright Eyes "When the President Talks to God" and NOFX's "Idiots are Taking Over", are lacking in both lyrical content and accuracy. They also seem to lack the "Folky" appeal that historically has transcended age and class. For generally better efforts, see Steve Earle's The Revolution Starts Now, and selected tracks from Bruce Springsteen's excellent Devils and Dust.

Conclusions

Neil Young's newest album, while not flawless, serves as an effective protest album that is also an artistic success. Living With War's lyrical imagery, combined with Young's vocals, provides the listener with an original, experienced voice. It is apparent that it is this experience, gained through both songwriting and a lifetime of careful observation, is what seperates Neil Young from his younger counterparts.

June 24, 2006 Posted by | Author: JPL, Bright Eyes, Dissent, Music, Neil Young, NOFX, Politics, The GOP, The Media, The War on Terror, Uncategorized, United States | 1 Comment

Chicken the China, the Chinese Chicken

A Changing Tide, the Spigot is Tightened

Since hitting an all time high on May 8, the MSCI Emerging Markets Index has fallen over 20%, as inflation fears and global monetary tightening begin to mop up the loose liquidity that has helped emerging market exchanges, along with other riskier assets, achieve strong annualized gains over the past few years.

With China experiencing staggering economic growth, one would think that the Chinese Stock Markets would have been on the winning end of a several year long emerging markets run. In fact, on June 6, 2005, while many Asian markets were continuously breaking multi-year highs, the Shenzen Compositie hit a six year low, puzzling amateur investors across the globe. Possible answers to China’s equity market conundrum can be found by taking a closer look.

The Times, they are a Shenzen

The Late Bird Gets the Sub Par Market Returns

China, a late bloomer in the Capital Markets game, did not have a stock market until 1990, and not a single Chinese company was listed abroad until 1993. As of 2003 -the latest information thescreamingpen.com could muster- over 66 million Chinese citizens participate in the domestic equity markets, with only 35 companies listed as private. It is estimated that at least two thirds of the shares listed on the Shanghai and the Shenzen, China’s two largest stock markets, are owned by the government. It is apparent that investors, especially those abroad, are hesitant to invest in companies whose balance sheets, among other things, could be compromised because of government involvement.

The Reforms of 2005

Realizing that capital inflows are essential to sustainable growth, the powers that be in China undertook some important reforms in 2005, including:

  • Public listing of the “Big Four” Chinese banks on overseas exchanges
  • Selling large stakes of domestic banks to international investors, which will result in increased capital inflows and much needed international banking expertise.
  • Reform of China’s A share market, which has resulted in 1/3 of China’s A shares being tradable.
  • The removal of capital gains taxes on securities held by foreign investors
  • The issuance of sovereign “Panda Bonds”, issued in Chinese currency.

Outlook and Conclusions

With the initiation of a global tightening cycle, it is possible that China may have missed out on the latest emerging markets rally. The good news is that China’s Eleventh Five Year Plan, which began on January 1, 2006, contains many provisions that aim to reform China’s financial sector even further. Hopefully these provisions are enacted.  This would allow China to efficiently handle foreign inflows of Capital, as well as wealth created at home.  If China continues down the road of financial sector reform, it will be a much needed step on the path to possible market maturity.

*Look for an overview of the Indian Financial sector reform in the coming days.

-JPL

Links of Interest

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/08/AR2006060801493.html

thescreamingpen.com is not liable for any loss resulting from any action taken or reliance made by you on any information or material posted by it. You should make your own inquiries and seek independent advice from relevant industry professionals before acting or relying on any information or material which is made available to you pursuant to thescreaminpen.com’s information service, as it may not prove accurate. You rely on this information at your own risk. thscreamingpen.com is not for profit.

June 9, 2006 Posted by | Asia, Author: JPL, China, Chinese Stocks, Corruption, Emerging Markets, Globalisation, Investing, Politics, World Markets | 1 Comment

Dude, Where’s My W-2?

Let me tell you how it will be;
There’s one for you, nineteen for me.
‘Cause I’m the taxman,
Yeah, I’m the taxman.

-The Beatles

 

A Possible Impetus For Change

Last fall, the international media focused much of its attention on European elections that promised to shake up the old European order. For those seeking real economic change in the form of market liberalization, those elections were partial letdowns. For instance, many analysts believe that a clear-cut Merkel victory in Germany could have provided the impetus necessary for much needed economic reform and market liberalization in other Western European countries. Following the formation of a grand coalition in Germany, it appears that constant compromise may prevent Angela Merkel, the new Chancellor of Germany, from carrying out her intended reforms. It is also uncertain what direction Poland’s newly elected center right coalition government will take the country. Before coming to the conclusion that all hope is lost regarding Western European change, one must consider an economic force that has been slowly moving westward, originating in the tiny nation of Estonia. The flat tax, which applies a constant rate of taxation, is exerting economic pressure in the form of tax competition on the high tax economies of Western Europe, slowly forcing economic change in those countries.

Reactionary Yet Opportunistic

From a historical perspective, it is interesting that many of the countries who have enacted constant rates are ex-communist nations who have voluntarily moved in the opposite direction of Soviet central planning, the failed communist system that attempted to control every aspect of economic activity. Much like the iron curtain before it, the flat tax movement and free market values are slowly moving westward, with Greece facing a crucial decision this year regarding the adoption of a 25% flat tax. In the recent Polish election, the pro flat tax Civic Platform Party came in a close second, and will now share power with the victorious Law and Justice party. In Germany, the early election campaign of Angela Merkel featured a proposed finance minister who was an outspoken supporter of a flat tax. Unlike the spread of communism, however, the flat tax movement is being voluntarily implemented.

Mail Order Brides are no Longer Estonia’s Chief Export

 

The flat tax system, which uses a single tax rate that is applied to wage earners and corporations that begins taxing after a certain income threshold is reached, has been successful in several nations beginning in 1994, when Estonia introduced a 24% tax rate. By attracting business from abroad, Estonia’s economy grew at double digits in 1997, and has averaged about 6% GDP growth per year since. Russia, a nation whose complicated tax code caused widespread evasion, instituted a flat tax in 2001. It is estimated that in the years leading up to the 2001 flat tax, Russia’s biggest corporations ignored 29% of their tax obligations, while 63% substituted goods or services instead of hard currency. This made Russia susceptible to debt defaults as their coffers reached record lows. In 1998 Russian government revenues were 12.4% of GDP. By implementing a simplified tax code, Russia eliminated loopholes and increased its revenues in real terms by 28% in 2001, 21% in 2002, and 31% in 2004.

Opponents of a flat tax, who believe that a flat tax is meant to line the pockets of the rich and will result in lower government revenues, fail to realize that flat tax systems do not tax earners below a certain threshold, allowing the poorest workers to be exempt from taxes. The revenue question is answered by looking at Russia, a nation who learned that the best way to get higher revenues is to give people more incentive to report their taxes by keeping tax rates low. Ideally, a low tax rate would result in more wealth creation, which could generate even greater revenue. Remember, the examples cited in this article are from countries that had an insanely restrictive, command style tax code. The flat tax is also making Western Europe increasingly uncompetitive, as businesses and investment dollars flow into Eastern Europe.

Implications

In response to widespread eastern European acceptance of a flat tax, Western Europe is beginning to consider tax reform. According to the Economist, Germany has already made plans to cut its corporate tax rate from 25% to 19%, and the in Britain, the Opposition Conservatives announced on September 7, that they would set up a panel to study a flat tax proposal. As investment dollars and businesses continue to flock to Eastern Europe from Western Europe, it will be increasingly apparent to Western Europe that in order to maintain its standard of living, it will need to make radical changes in its tax policy.

Conclusions

It will be interesting to see how the Western European nations deal with tax competition from the east. It is apparent that the increasingly uncompetitive Western European nations will need to modernize their economies in order to compete. It will also be interesting to see how the continued success of an Eastern European flat tax effects the current tax situation in America, where our own tax code has broken the nine million word mark.

-JPL

Links of Interest

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053102043.html

 

May 31, 2006 Posted by | Author: JPL, Emerging Markets, Europe, Flat Tax, Germany, Globalisation, Politics, Russia, Unemployment, World Markets | 16 Comments

The Stampede of the Global Herd

Yesterday marked the eleventh day in a row that the MSCI Emerging Markets Index fell, an event that has not occurred since August 13, 1998, the very same day that Russia defaulted on her foreign debt. Russia’s debt default marked the spread of the Asian Contagion, a financial crisis that swept across Asia after the devaluation of the Thai Baht. This time it appears that things are much different, as the fundamentals of many emerging market economies appear quite strong. And although Indian Brokers, who witnessed shares drop more than ten percent before the government intervened yesterday, will probably not find solace in solid fundamentals, it appears that the current drop in the emerging markets is due to investors fleeing risky assets in the face of a global tightening cycle, possible inflation, and cooling global growth. And although some investors are losing their shirts, it appears that this may be a price correction, not a crisis.

Seeing Red

Come On, Let Me See Ya Grill

Wait and See

While yesterday’s returns marked the end of an eleven day downturn in the emerging markets, it still did not end the doomsayers from predicting that today’s economic conditions are similar to either 1) the conditions preceding the October 19, 1987 crash or 2) the conditions that led to the Asian contagion. This could not be further from the truth, as there are crucial differences between now and 1987. In 1987, stocks were pricey, and treasuries were quite cheap. Today, equities are historically cheap, with investors paying a premium for treasuries. This is important because if investors flee equities all together, which would be required for a crash, they would have to pay a premium for treasuries as housing is showing signs of cooling, and the dollar is relatively weak. The spread of the EMBI+ to the Ten Year U.S. Treasury note still remains at close to record tights, signalling debt investor’s continued confidence in the fundamentals of the emerging markets. In 1998, the spread widened sharply, signalling falling confidence in the emerging market economies.

Conclusions

Although this is probably not a crisis, it could signal a change in investor sentiment, especially as monetary policy tightens worldwide. The managers of Large Cap mutual funds, some of whom have been predicting a return to their asset class for the past several years, may finally get their wish as investors may continue to flee assets that love loose liquidity such as emerging market stocks, commodities, housing, and small capitalization stocks. It will be important to keep an eye on the international markets, along with less risky asset classes that may benefit from the global herd fleeing risky assets in favor of traditionally safer bets. If there is not a change in sentiment, however, this may be a great buying opportunity.

-JPL
thescreamingpen.com is not liable for any loss resulting from any action taken or reliance made by you on any information or material posted by it. You should make your own inquiries and seek independent advice from relevant industry professionals before acting or relying on any information or material which is made available to you pursuant to thescreaminpen.com’s information service, as it may not prove accurate. You rely on this information at your own risk. thscreamingpen.com is not for profit.

May 23, 2006 Posted by | Asia, Author: JPL, Emerging Markets, Financial Markets, Investing, World Markets | Leave a comment

Cours, camarade, le vieux monde est derrière toi !

On the Anniversary of a Riot

On May 17, 1968, a general strike paralyzed France. Started by angry students at Paris’ Sorbonne, the powerful French Labor unions eventually joined, resulting in millions of French workers walking out of work demanding economic and social change. A week later, on May 24 1968, radical students raised a red flag over the Paris Stock Exchange and threatened to burn it to the ground. Eventually, Prime Minister Pompidou negotiated with prominent Union leaders and appeased the students by passing legislation that improved education funding and guaranteed minimum working conditions. French politicians, eager to please their constitutents and afraid of radical rabble rousers, passed increasingly socialist legislation in the following years that created an almost unpenetrable labor market for outsiders, strict hiring and firing laws, high costs for employers, and near ten percent unemployment. Although some good came out of changes brought on after the 1968 riots, the employment situation caused by socialist French employment policies has resulted in a nation in dire need of labor market liberalization. We will evidence this by adding context and perspective to two subsequent riots, those that took place in Fall of 2005, and the most recent riots related to Chirac’s CPE.

When thrown, stale baguettes make surprisingly effective projectiles
Fast Forward

Initially incited by the accidental death of a muslim youth, the riots that shook France in the Fall of 2005 lasted over twenty days, as disaffected muslim youth in the suburbs of Paris burnt cars and businesses. Seen as a threat to the French secular model, French muslims of North African descent face discrimination in an almost impenetrable workplace. Unemployment among native born French university graduates of North African origin is estimated by the BBC to be 26.5%, compared to white graduates’ 5%. According to BBC, “a French non-profit group said that after they sent identical curriculum vitaes (CVs) to French companies with European- and African or Muslim-sounding names attached, they found CVs with African or Muslim sounding names were systematically discarded. In addition, they have claimed widespread use of markings indicating ethnicity in employers’ databases and that discrimination is more widespread for those with college degrees than for those without.” It is evident that the riots that gripped France in the Fall of 2005 were the result of an unemployed, disenfranchised population who were fed up with their treatment at the hands of the society that has failed them.

When clowns cry

The CPE

In an attempt to liberalize the choked up French employment situation, Prime Minister Dominique De Villepin proposed the CPE, an amendment that attempted to tackle double digit unemployment. In France, after you are hired by a company, it is almost impossible to be let go, barring factors such as being violent on the job. This makes it extremely hard to fire incompetent workers or those not suited for the position, causing employers to be reluctant to hire. The CPE’s most controversial element was that it allowed workers under the age of 26, or who have been there less than two years, to be let go if the employer did not think they were right for the position for whatever reason. The proposal of the CPE was met by riots and protests as over three million demonstrated on April 4, 2006. The CPE was withdrawn on April 10, 2006.

Let them eat brie

Conclusions

It is apparent that employment has been a contentious issue among the French for the past few decades. The riots in 1968 helped bring about the socialist employment practices that have been partly responsible for the high unemployment rate today due to employer’s reluctance to hire new workers. It is also apparent that the French muslim underclass, who are discriminated against in the workplace, desperately need measures such as the CPE to be passed in order for their condition to be improved, as a loosening of hiring restrictions would allow them to prove themselves as equals in the workplace. The mostly white protesters that were protesting the CPE could have been doing so in an attempt to retain their status in a country that is increasingly threatened by the pressure of globalisation, something that will eventually cause the French to modernize or face serious economic and social consequences.

-JPL

May 18, 2006 Posted by | Author: JPL, Europe, France, Globalisation, Uncategorized, Unemployment | 1 Comment

On Prose and Politics

VIA MEDIA

We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time.

T.S. Eliot, The Four Quarters

Of the events of the 1930's leading up to the Second World War, no other event inspired young ideologues more than the Spanish Civil War. Young Intellectuals enlisted in droves to fight on both sides, including the writers Ernest Hemingway and George Orwell. The socialist backed International Brigade, funded in part by the Soviet Union, allied with Spanish Republicans in an attempt to defeat the Spanish fascists led by General Francisco Franco in a war that served as a precursor to the war that by 1940 engulfed most of Europe.

A portrait of the artist as a young man

Nancy Clare Cunard, a left wing intellectual living in Paris at the time, sent out a questionnaire to two-hundred writers living in Europe. She posed the following question: "Are you for or against the government of the Republican government of Spain? Are you for, or against, Franco and Fascism? For it is impossible any longer to take no side." The Anglo-American poet T.S. Eliot responded with a "neutral", leading to the assumption by Cunard and others that he was either politically ignorant or sympathetic to the fascists. This was not true, however, as he was a believer in "via media" or the "middle way", a belief that moderation is the only stance that takes into account the shortcomings of human nature. During a debate between T.S. Eliot, a fascist writer, and a communist writer, T.S. Eliot mentioned the following:

"Fascism and communism, as ideas, seem to me to be thoroughly sterilized. A revolutionary idea is one which requires a reorganization of the mind; fascism and communism is now the natural idea for the thoughtless person. This in itself is a hint that the two doctrines are merely variations of the same doctrine: and even that they are merely variations of the present state of things…. What I find in both fascism and communism is a combination of statements with unexamined enthusiasms."

Eliot believed that these "unexamined enthusiasms" led to irrational decisions during a time when rational thought was completely necessary.

This example of moderation is still relevant today, as we are faced with an increasingly polarized nation where sides are being taken and decisions are being made, sometimes irrationally. It is always important to take a step back and objectively examine issues in context. At thescreamingpen.com we attempt to place news events in context, while providing non-partisan analysis and perspective.

-JPL

May 14, 2006 Posted by | Author: JPL, Uncategorized | 1 Comment

It’s a Definite Maybe

Alternatives to Black Gold

Bean Guzzler

When Tim Kay used his internal combustion engine to power a carriage in the late 19th century, the modern automobile was born. Originally hailed as an environmentally preferable alternative to manure dropping horses, the automobile’s reliance on refined oil -and our reliance on the automobile- has yielded several positives, namely economic expansion, industrial innovation, and Jed Clampett’s accidental discovery of Texas T, which led to the relocation of his family to Beverly Hills. It is also apparent that our reliance on oil has caused serious problems, including pollution and dependence on foreign oil in times of high prices. It is apparent that there may be an interesting side effect to high gas prices, however, as alternative sources of energy become profitable to produce when oil and gas prices are high.

The Options
Alternatives to purely gas and diesel powered vehicles are plenty, although for today’s discussion we will focus on the most likely options. They include completely replacing oil as a fuel, finding new ways to extract oil in different forms, and blending today’s fuels with additives in order to increase efficiency and decrease emissions. New technologies that could help accomplish these ends that were not economically viable to produce when oil was cheap, are now economically viable at $70 per barrel oil. Economic viability implies that if conventional oil is at a price lower than what it costs to produce an alternative, the alternative will not be produced because consumers will purchase the cheaper good. Along with providing insight into the direction of alternative energy, this is an important exercise in illustrating the market’s role in the energy issue. So far, it is apparent that the only way a move away from conventional oil will occur, is if market prices dictate a move, as tax credits for hybrid vehicles at both the state and federal level have been largely ineffective.

Shale Oil

The harvesting of the oil sands in western Canada have resulted in an economic boom in that area. This project, initiated on a large scale when oil became pricey, should serve as an example to America, who has similar reserves in the mountain states. Shale oil, which is held in porous rocks and is expensive to extract, is abundant in the Green River Basin of Colorado. It is estimated that the Green River Basin may hold up to two trillion barrels of shale oil. Cambridge Energy Associates estimates that it is viable to extract shale oil when crude is around $50 a barrel.

Related links:

Raytheon teams with Hyde Park Company for Shale Oil

BLM picks Oil Shale Development Candidates

Biodeisel

Biodiesel is a mixture of diesel fuel and vegetable oil that produces a cleaner burning fuel with fewer emissions. The vegetable oil acts as a natural detergent that cleans oil lines better than the chemicals that are added to diesel. It is estimated that the production of Biodiesel makes sense from a profit standpoint when crude is at $80 barrel.

Related Links:

Countries Largest Biodeisel Plant Planned

Interest in Biodiesel Increases with Price of Gasoline

Concerns

Although it is likely that we will eventually move to an alternative to conventional oil, OPEC nations would merely have to increase production for an extended period of time in order to drive the price of oil down, again making these alternatives unlikely. In order to be effective as a cartel and continually bring in the American dollars that prop up many of their economies, the oil producing nations need to do a better job from the production end. A shift away from oil would wreak havoc on the economies of Iran, Venezeula, and Russia, nations who are dependent on international oil sales. Also, this technology will not be adopted overnight, meaning that the current price of oil with regards to viability is somewhat irrelevant. If companies and investors believe that increasing oil prices are a secular, long term trend, then it would be absolutely necessary to begin developing alternative technology now, as a paradigm shift in the energy business could leave energy companies without an alternative energy business facing a loss in profitability.

-JPL

May 10, 2006 Posted by | Author: JPL, Energy, Oil | Leave a comment

Oil, Gold, ETFs, Oh My!

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die in euphoria.”

– Sir John Templeton
The financial media’s obsession du jour of rising commodity prices has resulted in a frenzy of investing by amateurs seeking the high returns that they cannot seem to capture in the current lackluster American equity market. A recent article in the Financial Times mentions that pension funds in the United Kingdom have been pouring record amounts of money into the commodities markets. ETFs that allow investors to bet on the price of oil and gold have been opening at a record pace, as news conscious investors are afraid that they will miss the boat on the commodities boom.

While it is possible that long term factors such as rising world demand for commodities, along with shorter term factors such as the current situations in Iran and Nigeria will cause increases in the price of oil and other commodities over time, it is foolish to believe that the current bull market for commodities, especially oil, will continue forever without experiencing a price correction. There is a distinct possibility that we may be in for a short term bear market within a secular long term commodities bull market , especially for oil. For today’s discussion we will focus on oil prices, as it is a topic receiving heavy attention in the American media right now.

source: Oilenergy.com

Graph: Notice that the current bull market for light, sweet, crude is longer in duration and greater in magnitude than other historical booms, most notably the one that occurred in the mid 1970s.

Smart investors are aware that the time to buy into an asset class is when that asset class is out of favor with other investors, not when it is experiencing record returns. Logic tells you that the time to invest in an oil ETF would have been in the late 1990s, when oil prices were low. It is apparent that the global herd of investors are acting illogically and this is where the smart investor will recognize and seize opportunities. It is possible that the same people who saw opportunities at the height of the tech bubble in 2000 and lost money, are some of the same people who are buying into Oil and Gold ETFs right now. Although past performance is not indicative of future results, we may be experiencing a price ceiling right now, which would be negative for those who recently bought into oil, but good for the price of gasoline at the pump.

-JPL

 2006. All rights reserved.

thescreamingpen.com is not liable for any loss resulting from any action taken or reliance made by you on any information or material posted by it. You should make your own inquiries and seek independent advice from relevant industry professionals before acting or relying on any information or material which is made available to you pursuant to thescreaminpen.com’s information service, as it may not prove accurate. You rely on this information at your own risk. thscreamingpen.com is not for profit.

May 7, 2006 Posted by | Author: JPL, Oil, Uncategorized | Leave a comment