TODAY’S THOUGHTS: OIL SUPER-CYCLE, FINANCIAL BLOGGER BUBBLE, NEW RESEARCH, NEW CONSULTING GIG AND MORE!
Today's Thoughts is a nightly article sent to "Fire" level members of Zenpenny. I am posting it on the blog tonight, as I do once in awhile.
Sometimes it feels like you're working on a million things and it becomes difficult to compartmentalize
everything in your seemingly inadequate mind. For example, I have been wanting to write a report on
what I believe is going to be the coming boom in everything oil related, lasting a good part of this
decade for thestreet.com. Simply, haven't had time.
And then an idea came to my head with respect to all of the financial bloggers out there who seem to
be in this bubble of self-righteousness, when all they have become is professional regurgitators of
news. It's rare to come across a financial blogger that offers any value. We are officially in a financial
blogger bubble. I want to write about this...and will be soon.
Then I have the issue of researching a new name I am considering putting together a research report
on. It is looking great so far. I'm gonna need a couple of days to compile more info on it. Could be a
400% to 500% mover over the next 12-24 months...not bad. It is a more risky and volatile name than
any of the others we are currently holding, which is why I want to be sure that it is worthy of joining
the rest of the names.
I am also working on putting together a proposal to consult with a couple of the major discount brokerage
houses to revamp their active trader products. I think that there are a lot of big names in the industry
that have fallen behind the curve. I have been working on ideas to enhance their products and will be
presenting it to the executives of one of the companies in the coming weeks.
Before trading on the institutional trading desk of Bank of America, I was in charge of getting their
internet trading division up and running...until I wasn't. They couldn't make up their mind as to where
on the list of priorities internet trading was...this was in the late 90's. I think they still have the same
problem today.
The general markets have taken on quite a bearish slant with today's action. All the while, the oil
markets are looking like they want to challenge some important resistance levels in the coming days
and weeks. The opportunity exists to make some serious money in the coming years in the oil markets.
The perfect storm is upon us to take us into a super-bubble in oil:
1. An Arab world that will be struggling between fundamentalist Islam and the thirst for a democratic
system for many years to come. You can't be fundamentalist anything and expect to have a true
democracy. The two cannot co-exist.
2. An Iranian government that will become all the more powerful as a result of the problem in all of the
Arab countries that surround it. They will exert their power through quiet acts of influence similar to what
they are doing in Iraq at present. Sunni and Shiite tensions will rise as a result.
3, A demographics issue with what is going on in North Africa, Middle East, Asia and South America.
The age of information has brought a "why not us?" attitude to these regions. They are quickly building
infrastructure and coming into the modern world, making up for decades of lagging behind the West.
Everything that they are doing and will want to do will require oil, from the production of their food, to
their transportation, to the containers they use to take their food home when they start serving portions
that are far too large...a natural side-effect of becoming "westernized".
4. An inflationary super-cycle that takes all asset prices higher, led by commodities. Oil will not be left
out.
These are just a few of the issues, I will be outlining more in the report I am preparing for thestreet.com.
Play it right over the next 5-10 years and the possibility for creating wealth is beyond anything that can
be imagined. I'm gonna give it my best shot...I'll let you know how it turns out in about 2017.
