Seems like one of the safest options for investment is the oil market. It seems to yield a steady profit.
Check out excerpt from Gillian Wong, Associated Press Writer :
"Oil prices surpassed $103 a barrel for the first time Friday as persistent weakness in the U.S. dollar and the prospect of lower interest rates attracted fresh money to the oil market.
Investors chose to see the comments as confirmation of their beliefs that the Fed will continue cutting interest rates to try to shore up the economy.
Lower U.S. interest rates tends to weaken the dollar, and crude futures offer a hedge against a falling dollar."
My analysis : If the u.S. $ weakens, the "horde mentality" will kick in, and investors will rush for oil, oil and more oil stocks.More excerpts:
"
The Japanese government on Friday urged the oil cartel OPEC to increase output to help ease record prices.
"The high crude prices are gradually damaging the global economy. This will damage the economies of oil-producing countries," Minister of Economy, Trade and Industry Akira Amari said. "
My analysis :
There is global concern. The second largest economy is already in not too good a shape. There needs to be a serious global consortium to discuss the implications of skyrocketing oil prices.
Both from an investor's point of view.
As well as from a consumer's point of view.
