You should own commodities like the Jim Rogers Commodity Index Fund. We are in a major secular bull market in commodities that will last several more years. There will be corrections, but the trend is intact.
Margin requirements raised oil margin requirements by 25% This is going to cut demand for oil for a week or two. The CME wants the price of oil to go down, but they’re not going to be able to stop the rise in price no matter what they do.
There is a declining supply of oil at the rate of 6% per year. Do the math. In 16 years, there won’t be any oil left at any price, which is why the Jim Rogers Commodity Index Fund continues to buy more.
It’s embarrassing right now to own dollars, but if the Fed is going to stop QE2 and since everyone is so bearish, it may be time for a rally. The Jim Rogers Commodity Index Fund owns Dollars because of the extreme negative sentiment right now. There are just too many bears.
In the long run, there may be problems in the supply of oil, but there isn’t a problem right now, and demand all over the world has slackened. United States consumption of oil is back down to 2005 levels. It’s possible oil could drop pretty steeply because of these new margin requirements.
Oil could go down 15, 20, 25%. Every market has fluctuations. Look at any rising stock. There is almost always a 30% dip somewhere along the way.
The Jim Rogers Commodity Index Fund is long commodities, long currencies, short stocks, and especially short tech stocks in the United States. Technology is going to go down more.
Greece is back again in the news. Greece is bankrupt, and eventually the EU will allow them to go bankrupt. A lot of people are going to lose a lot of money. 95% of people are bearish on the treasury. That is way too many people to feel confident about shorting Treasuries right now.
