Ever since $80 a barrel, I’ve known guys way richer than me, shorting it. I want them all to stop trying to be heroes, stop trying to call the top, and for heaven sake stop losing money.
Seriously, we’re running out of oil, get it through your head. While the price point for a barrel might be a bubble, it’s a price on a curve that is going to keep moving higher. The only people who are going to make money shorting it, will be lucky or dumb, because to be successful you’ll have to call a top, and take profit on any sign of a pull-back. Which it could very well do. But, what’s the point in that? You’ll make a few bucks and get to brag, but that’s not a sustainable investment. That’s not something you can learn from then apply to another phenomena (at least not in your lifetime). And suppose it goes against you, in my opinion, the worst kind of loss, is one you can’t learn from.
You, and your offspring, would be far better off putting your brain to better use, and trying to spark a little creativity. Look for good investments…instead of sure thing gambles.
There are tons of companies that are going to profit, if oil falls, and they are still okay businesses if oil keeps trucking higher. Invest in those, if you’re really bearish on short-term oil.
Me, I’m glad to have not touched it, and glad there are tons of other opportunities where I get to be optimistic instead of trader on the brink of getting steamrolled by the next stride oil makes towards $150.
…these are my thoughts, likely not yours…sigh…good luck all!
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