Here is exactly what he said. When I read it I saved it just to see if he would be right Forbes Expects Oil Price to Dip to $35 Monday August 29, 11:01 pm ET Publisher Steve Forbes Says He Expects Oil Price to Dip As Low As $35 Within a Year SYDNEY, Australia (AP) -- Steve Forbes, the American publishing executive, said Tuesday he expects the price of oil to fall as low as US$35 a barrel within a year, blaming the current price spike largely on speculation. Forbes, in Sydney for a conference of global business leaders sponsored by his organization, said that U.S. inflation was helping fuel the rise "and the rest of it is a sheer bubble of speculation." "I think in 12 months we are going to see oil down to US$35, US$40 a barrel," he said. As Hurricane Katrina lashed the U.S. Gulf Coast on Monday, oil hit US$70.80 a barrel, before retreating. "It is a huge bubble, I don't know what's going to pop, but eventually it will pop," Forbes said of the oil price.
Now your figuring it out, just watch the charts and ignore the news. After about 5-7 years of following the markets tick by tick you will learn. But your right, not long ago the economy was overheating the stock market was to high blah blah blah. Oil is still in an uptrend and has good support @55
The market in general seems all about faith. Nope, not religious faith, but just faith. There is a whole lot of cash out there and there are only a few men controlling it. When they believe an equity is a buy, they buy it sending the price up. When they believe its a sell, they sell it and the price goes down. The key word is *believe*. It has nothing to do with fundamentals or demand. They only have to believe but not what is real. So with that said, the best thing us commoners can do is follow the herd of money managers from one target of belief to the next. We ourselves cannot make markets. We can only follow these guys that do. So if the money men lose faith in oil then, of course, it will trend down. They will then find another target of belief to sink their dollars in whether it be tech, staples, houses, or whatever is the flavor of the day.
eagle 488 wrote.... The market in general seems all about faith. Nope, not religious faith, but just faith. There is a whole lot of cash out there and there are only a few men controlling it. When they believe an equity is a buy, they buy it sending the price up. When they believe its a sell, they sell it and the price goes down. The key word is *believe*. It has nothing to do with fundamentals or demand. They only have to believe but not what is real. So with that said, the best thing us commoners can do is follow the herd of money managers from one target of belief to the next. We ourselves cannot make markets. We can only follow these guys that do. So if the money men lose faith in oil then, of course, it will trend down. They will then find another target of belief to sink their dollars in whether it be tech, staples, houses, or whatever is the flavor of the day. ................................................................................................. Awesome post !!!!!!!!!!!!!! The everyday price movements do move with reason ...and can can be traded successfully by the few.....and the above quote covers the long term player view...which is why I would never put a penny in established broad based stocks for a long term expectation... Price multiples...this stock is cheap....blah blah blah... It would be safe to say that 99.99% of the people you see blabbing away on CNBC etc. about stock opinions have no performance documentation backing the validity of their blabbing away.... However I certainly hope they continue their mischief....more money in the markets...
Harry Newton writes 8:30 AM EST Tuesday, October 17, 2006: Once in everyone's lifetime a great, "can't lose" gamble comes along. Soros made a billion or shorting the British pound. I think you can make it in oil. Long-term it will rise from last night's below $60 price for a barrel of light sweet crude. You know my long-term reasons from the last few days' columns. Short-term -- i.e. over the next year -- the price of oil may explode. We may be looking at $200 a barrel. I have new reasons. Last night I attended a lecture by Scott Ritter and Seymour Hersh. Scott has just written a new book: In it and at last night's lecture, he argues that the U.S. will soon invade Iran. Our reason? Regime change. If that we do invade Iran, it will retaliate instantly by bombing the oil fields of Kuwait, Saudi Arabia, Iraq and blockading the Strait of Hormuz, through which a big percentage of the world's oil moves. Says Scott, "Within two days every American will feel the pain in their pocketbook." Nothing will happen before our November election. We have some time to figure the best way of playing this. What we all need to do: 1. Read Scott's book. Click here. 2. Read my column tomorrow. I'll explain more of Scott's logic and what he and Hersh said last night. 3. Check into the best way of playing this. There are many ways of playing a rising oil price -- from Canadian oil sands companies (now moving up) to iShares or buying crude oil futures on the Chicago Mercantile Exchange. Today, you can "control" a December '07 oil futures contract worth $68,020 for $6,100. This is NOT the same as buying a call option. If the price of oil goes to $0, you will lose $68,020. If it falls below $60, your broker will ask you to put up more money. But because it's so leveraged, you can make a lot of money if the price of oil goes up significantly.
If the guy feels he has to explain the difference between an option and a futures contract, I'd say he should maybe taget his readers a bit more.
I predict $5,000 oil by next spring, please see my new book called "Why oil should be $5,000 per barrel cause I said so"
T. Boone is that you? Jim Rogers is that you? Sounds like you're lowballing it if you ask me. BTW I heard something about the USS Eisenhower heading off to Iran about 4-5 days ago. May have been Seymour who pointed this out. Stay tuned. http://www02.clf.navy.mil/eisenhower/ I agree no new wars before the election and no ground wars. Too many Iranians. But bombing perhaps. Bush & Co. = MegaMorons. Assholes!
T. Boone called the collapse of Nat. Gas at the beginning of this year. He called the move from $15 ---> $8, and when he called it everyone thought he was nuts. Little did he know MotherRock and Amaranth would push nat. gas below $5. BP Capital always trades the back end of the energy complex, T. Boone put this control in place many years ago when he came to the conclusion that its next to impossible to make steady money in the front end. I'd take that with a grain of salt though......