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Russ Koesterich: Call #1 – Remain overweight on global energy companies: Unfortunately September lived up to its reputation as the worst month of the year. Read more…
The high cost of oil and the fast-rising price of gas is stimulating the markets this month – but in the wrong direction. To help investors who want to profit from and have a portfolio hedge from rising energy prices, MarketRiders (www.marketriders.com) is offering its own all-Exchange Traded Fund Read more…
Please see the right hand side of Scott’s Investments for the March update to the US and Global Sector ETF portfolios. I track the performance of each month’s portfolio as well as previous Read more…
Good morning! I hope you had a great weekend. First things first. The bounce you’re seeing in gold and silver are not — I repeat, not — the beginning of their next legs up. Read more…
Despite bullish rhetoric from Washington and some indications of progress–the strength of the recent earnings season was a pleasant surprise–investors remain anxious in the current Read more…
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“There is no doubt in my mind that we will eventually see $200 dollars for a bbl of oil, and $6 at the pump. If one has long tem equity to commit, the energy sector isn’t a bad way to go. Even Obama can’t stop it. British Petroleum (BP), CNOOC (CNOOC), China Petroleum and Chemical Corp. (SNP), and ExxonMobil (XOM) Read more…
Gold is selling at a historic premium to black gold. Sell the former and buy the latter to ride the likely correction to come.
Gold futures made a rebound on April 20 as the volatile stock market triggered investors to dive into the precious metal. But they may be diving in at the high end of gold’s run, at least for now.
“The stock market got beat up pretty bad and anytime there is that kind of uncertainty, people turn to gold. Gold is, and has always been, the save haven investment.” said Patrick Lafferty, commodity trading adviser with MF Global.
At $885 an ounce, the price for gold is historically high, particularly in comparison to oil prices. Typically, it takes 10 to 15 barrels of oil to buy an ounce of gold; currently, it would take close to 20 barrels. On the flipside, an ounce of gold traded at just 4.5 barrels of oil last summer when the former was at $666 an ounce and the latter was at $147 per barrel. We all know what happened next: Oil fell sharply from its historic highs and gold rose by over $200 per ounce. Still, oil fell farther and faster than gold rose, meaning it was more overpriced than gold was underpriced……..
……..Those looking to invest here might want to consider exchange-traded funds, which track indexes but trade like stocks. For gold you could consider the SPDR Gold Trust ( GLD – news - people ), which owns actual gold vs. shares in gold-related firms. Its been in operation since November 2004 and has a market capitalization of $24.4 billion, which is quite large for an ETF.
For those looking to invest in oil there are a few different options. One is the PowerShares DB Oil Fund ( DBO – news - people ), an ETF that seeks to directly track the performance of crude oil. Downsides here include the ETFs small size–its market cap is just $46.3 million–and its short track record.
Or you could consider the iShares S&P Global Energy Sector ETF ( IXC – news - people ), which tracks firms engaged in oil equipment and services, oil exploration and production, and oil refineries. Its been in business since November 2001 and has $524.1 million in market cap.
Full Story: http://www.forbes.com/2009/04/22/gold-oil-commodities-intelligent-investing-inflation.html
On Saturday, British Petroleum (NYSE:BP) shut down operations of its 800-mile Trans-Alaska Pipeline, after an underground leak was discovered at a pump station. 
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