Saturday, April 29, 2006

What is on investors minds? Always Money??

Well it is money but more specifically how to protect that money. Those that invested in the energy sectors have had a bonanza the past few years so they have a lot more money to protect. Now the related concerns are confusing as the street folks are bitter, politicans are floundering, and many vested intgerests are blaming others for the energy problem. Lot of irrational uncertainty prevails. Yes it is a problem that may cause many to lose money and most agree that money spent on energy takes away discretionary spending in other areas. So this is all past weeks news - now what does an investor do? Well if one is holding energy stocks they can hedge their gains. If a bubble doesn't burst it can slowly leak. XOM. COP and O&G indexes are all near their all time high . One can average out some % if they drop below your risk tolerance. With the battling of the powerful + wars the volatility will continue. "Everyone" agrees that a qauick fix to prices are not possible so we are forewarned. The problem has so many conflicting interests that the PR will not go away and wall of worries & confusion are here to stay for some time. The paradox is that the O&G sector is usually the safest but not now? Another related sector to the energy group, precious metals,is exhibiting the same volatile trait. So the song goes " you got to know when to fold em." Pete

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