Thursday, December 4, 2008

$25 Crude?

Crude is in the low 40s? What is our prediction as to how far it goes?

http://finance.yahoo.com/news/Oil-tumbles-below-44-a-barrel-apf-13749673.html

The same as any asset that is going down (including commodities) which we have written about - until it stops going down.

Clever as we are, we are no Wall Street Strategists, those gurus of old that predicted last year in Barons that the S&P would be around 1600 at the end of this year!

They can even tell you the day and the price that Google, GE, the S&P, crude , gold, and anything else will be. They will go on CNBC, Bloomberg, Forbes, the WSJ. And they will almost certainly be wrong!

What we emphasize is that prices go up until they stop. They go down until there are more buyers than sellers. It has always been this way. Target prices and dates sound intelligent, but they are useless.

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