Let’s get a few things out of the way first, discussing the obvious. The Middle East is in flux because they are living in the 1500’s, both in their forms of government and way of life. If you would like to debate the difference between human rights in western countries compared to “over there,” fuck off: I have no time for that shit.
This is what is important to know: Asian markets are reeling tonight, as transformation takes hold of the oil rich state of Libya. The greater fear, of course, is contagion. Revolution is contagious. I would not be surprised to see demonstrations against the House of Saud. Let’s face it: monarchies are a little dated and retarded. I much prefer the song and dance that our two party system performs for us every 4 years, than the crap being “blessed by God” over there.
If you were a wealthy tycoon in Egypt, Libya or any of the countries in danger, where would you put your money? Would you leave it in your domestic currency?
Hence, the price of gold and silver are soaring, as it is the de facto currency standard of the globe, especially since the dollar has blatantly been depreciated in order to placate the whimsical machinations of Ben Bernanke.
Oil is ripping to the upside, due to the fact that 36% of global oil supplies comes from the Middle East. Should the fuckers from Saud come under assault, oil will shoot, mind you, straight to $200.
All of this is horrendous for “global growth.” In the short term, turmoil is bad for markets. However, investors will find respite in the right sectors, namely precious metals and oil.
I am not sure if I will make money tomorrow, since I have no idea how the oil sector will perform. I am pretty sure my gold/silver stocks will gallop higher. And, conversely, I am certain some of my “non-commodity” stocks will get bludgeoned.
If you notice a more serious tone to this missive it is because I have consumed over 10 cups of coffee today and feel as if I could punch a hole through a large ball of scrap metal.
It’s hard for me to give cogent advice for the week ahead, without seeing how stocks trade. Judging by the homofied action in Europe and Asia, I’d say we’re in for a helluva punch to the scrotum.
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