Brett Arends writes, in today’s Wall Street Journal:
Keep socking money in that energy fund. And if you haven’t been doing THAT so far – start.
No, it’s not too late. Just add money slowly, in stages.
Obviously, oil is in a raging bull market. That has taken it to just shy of $140 a barrel. The Saudi oil minister has basically admitted his country has little extra output to add. Bulls are pushing at an open door.
So if you’re sitting on the sidelines, you are missing out on profits.
I believe that both tops and bottoms are marked by fear: tops by the fear of missing out on profits and bottoms by the fear of losing everything.
And it seems to me that the “fear of missing” is a significant driver of the oil market right about now.
Arends continues:
It’s not often I recommend investing in something, like oil, that has already risen a long way. I am usually to be seen rummaging through the stock market’s bargain bin.
But in this case, as I have written before, there are reasons to make an exception.
In other words, “it’s different this time,” and if you’ve spent any time at all studying markets, you know these words are the kiss of death.
Source:
Cashing in on the Oil Boom
Brett Arends
The Wall Street Journal
June 18, 2008