Profit from Oil Prices: Invest in China
May 2nd, 2008 | By Keith Fitz-Gerald | Category: Oil Investment & Alternative EnergyFor years, I’ve been telling hushed, incredulous audiences around the world that oil prices were headed higher - much higher. I consistently list three causes: Supply, demand, and interruption.
The first is obvious - even though most folks still don’t want to believe it. Data suggests we’re burning through the world’s petroleum reserves four times faster than we’re finding new ones. We haven’t had a major new discovery of significance in 30 years. And, adding insult to injury, we still don’t have workable substitutes in place (alternative energy technologies such as fuel cells, for instance), even though we’ve had decades of warning to get our act together.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THE INVESTMENT CLUB YOU CAN’T GET INTO
The Wall Street Journal recently reported that “there are now more than 430,000 households in the U.S. with a net worth of $10 million or more.”
You’re about to have the opportunity to join them.
Investment intelligence powerful enough to put $500,000 in your pocket over the next 12 months. Learn more.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The second, demand, is tougher to call. On one hand, higher prices are reducing demand in so-called first-tier countries. But when it comes to the rest of the planet, all bets are off.
Here in China, they’re using fuel at an accelerating rate. Part of that is the increasing reliance on fuel oil, but an even bigger catalyst is simply because companies like Chery Automobile, Geely Automobile (0175: Hong Kong), and Chongqing Changan Automobile Co. Ltd., are producing inexpensive, gas-powered cars for the masses.
The same is true in India where Tata Motors (TTM: NYSE) $2,500 car is opening up driving and vehicle ownership to millions of consumers who otherwise would never have also become motorists.
And they’re gearing up for more. Read on to learn how to profit from China and India’s gas guzzling.
****Make sure you sign up for our free TFN News Feed for breaking news, special reports and new financial videos. You can pick your favorite reader . Or if you prefer, you can have the feed delivered to your email.
Advertisement
The problems in the U.S. economy have come together to create a "super crash" that has already wiped out $6 trillion worth of American wealth. But those who understand how to play the many bear market opportunities out there are still making healthy profits… while everyone else loses.
Television analyst and leading bear market strategist Peter Schiff is handing you his precise game plan to ensure you survive market downturns and grow 5 times wealthier over the next six months. And he's doing it for FREE. Click here for details.
Keith Fitz-Gerald is a Contributing Editor to Money Morning, as well as Investment Director of the Money Map Report and editor of the New China Trader. He is also a seasoned market analyst known for his accuracy, perspective and insight. He is also a former professional trader and licensed CTA advising institutions and qualified individuals, and he specializes in non-directional trading.
