My shoe shine boy told me to buy oil, is it time to get long?

My shoe shine boy this morning told me to buy oil, should I take his advice?My shoe shine boy told me to buy oil, is it time to get long?
Well, I don麓t personally think it is quite straight forward as every answer you have received so far, gives. Though I may agree with the Rockefeller story. Oil is obviously the main talking point and well it has been since December or last year when $100 per barrel was highly possible, indeed which it made in early January. The problem with the advice you have been given so far is that it fails to ignore one very basic element of standard economic understanding, the supply and demand issue. Supply is well known and highly documentated as decreasing. This due to political unrest and Opec decreasing output, is having an effect on supply. Also in one school of thinking, oil is believed to be reaching it麓s maximum and depleting oil fields, particularly in the US, are starting to take their toll on supply too. We all know it is going to run out eventually, the question has always been when. It seems opec are starting to get scared it might be sooner rather than later so are looking for every last possible buck they can make before it goes completely.





The other factor is demand, which unless I live in a completely different world to those who have answered already, seems to be increasing. This slowing in supply and increasing in demand, always as far as economics is concerned has meant that the price of said product, in this case oil, always goes up. China and India are still quickly growing economies who are demanding more and more oil each day. The US still is the highest consumer and until the american opinion on biofuels, nuclear or more environmentally friendly forms of energy changes, they will still continually drive around in their 6 litre SUV麓s drinking up the stuff as they go. As such on a very basic level, the price of oil will continue to increase in our present climate. Until we find something else to replace it with or the stock markets absolutely crash (which though possible is unlikely realistically to happen) then oil will continue to see good times ahead. That being said, the current state of world economics is still a bit precarious, though if you have a spare few pounds that you can afford to lose if the worst comes to the worst, oil is a fairly safe bet, even safer than houses. Though you have to think through the situation and the arguments for yourself, nobody else will and at the end of the day it is your money. Good luck.My shoe shine boy told me to buy oil, is it time to get long?
Nope, it means get out of the stock market. There's a story that John D. Rockfeller was getting his shoes shined and he overheard the other shoe shine boys giving each other stock tips. He knew right then and there that the stock market was about to crash and sure enough it did in 1929. The moral of the story is...... that shoe shine boys jinx the stock market.
Then it might be time to go short!





Realistically if we look at historical parallels around $70 is where oil should be but we have this vastly over inflated price of $126 last time i looked on http://www.goldpricecrash.com/index.html .





Of course the oil price is always volatile because it tends to belong to the most volatile regions in the world. Venezuela has settled and so too has Nigeria. How long before we see a sustained strengthening of the dollar, a glut in oil production and a fallback as we saw in the mid 80s?





This issue is currently being discussed on the forum http://www.goldpricecrash.com/forum/topic52.html
No, that would be the clue that you should go SHORT, dude.





(When everyone is doing it, the trend is no longer your friend)
well oil is going up in price but what goes up must come down as they say . depends if you have the money to invest in such expensive stocks
nicedoc got it right. And the shoeshine boys again said to invest in Internet b2b, Tech, MCI, and Enron back in Jan 2000.
shoe shine boy??? where do you live mate? can you not clean your own shoes?