$76 a barrel for oil - this can’t be good

by Darren

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Investors hate Fear Uncertainty and Doubt (FUD). We’ve talked about this before, any type of FUD can result in folks losing their confidence in investing. Today stocks are way down in early trading because of the skyrocketing oil prices. To say that the Middle East is engulfed in heightened tensions right now, might be an understatement. Oil prices continue to rise on the likelihood of increased violence.

“The oil price has become a register of geopolitical tensions and fears,” said Daniel Yergin, who heads Cambridge Energy Research Associates.

I couldn’t agree more with Yergin’s statement. The FUD Factor is shows prices at $76 a barrel. I think this means people are very scared about the future of oil. It’s hard to blame them. It seems remarkable that people are not seriously engaging in dialogue concerning going off the oil standard in the forseeable future.

There’s a huge demand for cars that don’t waste oil. Hybrids are capable of big sales, but the initiative lacks energy.

It might be time to look into Railroad stocks. Rails are cheaper for hauling these days, and the companies are having a resurgence.

If you enjoyed this post, Grab the free Superior Investor Blog full RSS feed!.