Earlier this morning, a Goldman Sachs analyst predicted U.S. recession is an absolute certainty in 2008, giving it a “10 out of 10” chance. She feels the Fed will lower rates to 2.5% and the unemployment rate will soar to 6.5%, by 2009.
Should this occur, bet your bag of “homo-hammers” oil stocks will get knee-capped, as investors look for a “source of funds.”
There are so many ways the oil companies can lose here.
Should oil gap above $100, I am 100% confident the democrats will ring the “bells of communism,” calling for a windfall tax on big oil. And, as the market gets hairy, fund managers will blow-the-fuck-out of [[XOM]], [[COP]], [[CVX]], amongst others, in order to raise cash.
As you know, the best way to play XOM getting its hair piece pushed back is via [[DUG]].
By the way, I’m no currency guru (just stocks), but converting bullshit dollars to renminbe (China’s currency) seems like a dunk shot. Currently, the dollar is at an all-time low, versus the Chinese currency, as pressures build for China to revalue its currency.
There is an indirect way to play this, via an online bank named “EverBank.”
Apparently, it allows you to open up a checking account tied to the renminbe.
Finally, look for all stocks, except Chinese ones, to come under pressure today, at least in the morning. Aside from the Goldman recession call, [[BBY]] said business blows.
NOTE: If [[FXP]] has the balls to open up under $76, I’m buying it with both hands.Comments »