Take Your Profits
The momo investors were probably laughing at Prince Mohammed’s warnings, thinking it’s all a bluff.
But MbS is not the type of person that uses BS. He is quite serious. The Saudis are willing to flood the world with oil until its rivals – especially Iran and U.S. shale producers – are vanquished.
My advice to investors is to not get caught up in the momo euphoria. If you have profits in the shale patch in the past few months, take them. Their vast debt overhangs have not gone away.
Avoid direct plays on oil using derivatives too, such as the United States Oil Fund (NYSEArca: USO).
If you insist on having oil exposure, stick with the company with the best balance sheet: Exxon Mobil (NYSE:XOM).
Oil prices are not off to the races.
This article is brought to you courtesy of Tony Daltorio from Wyatt Investment Research.