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Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Sunday, May 16, 2010

How low will oil go?

My Views on Oil prices:
Seems like at the present time, all the prices are managed by hedging and financial companies owining stocks or having interest in the oil companies. It is not exacltly a reflection of future of oil all the time. The reason I say this is as we have a lot of OIL in stock in USA and still oil prices keeps on going up. Then as soon as the news became more public oil prices fell a little bit.
 Still the best strategy is to buy low and sell high. Although it all depends upon your timing and if your estimates fall correct. If you go on buying stocks or keep interest in oil, and buy it depeding upon your knowlege and statistics of the oil,  then short term startegy may fail if lot of hedging goes on but long term it would be a success.
I still think that oil would go down for a little while but utlimately its rate will go up as more and more people start travelling in summer. It may not go as high as it has been in previous years as more and more people are driving compact cars giving good milage. Another factor keeping it low is unemployment. As soon as more and more people get employed they will start travelling more and this would increase the prices of oil.
What is your take on OIL prices?

Friday, May 14, 2010

where to invest Shares, Gold or Land

My view on investment:
During these hard times, when worldwide economy is going up and down, the safest way it to invest in basics. With basics I mean housing. If you already have the house that you want for yourself and have extra money to invest, go for extra land or house or precious metals.
One more trend I have seen and would like to try myself " Invest at low rate and sell at high rate". If you have the capacity to hold for some time look for stocks that are below it's value. Here is what I would like to do. I would invest in companies that would give good dividends. Even if their price go down I would get some money in dividend till the prices go up and I sell them.
    My thinking is that US dollar is going to be devalued very soon, Inflation is going to come as soon as the unemployment starts going down. As employment goes up people will start buying and people with extra money will buy and invest more which will bring up the inflation. Goverment may increase the interest rates to keep low inflation but once it hits US dollar will devalue.
    Once US dollar devalues housing price will rise and so will the precious metals.