Monday, July 18, 2011

Oil: Right Now

Oil is at an attractive price, near $97.

http://www.sacbee.com/2011/07/17/3776069/oil-near-97-amid-debt-crisis-us.html

It is a good buy right now. Also, given this piece of information:
http://english.aljazeera.net/indepth/opinion/2011/07/201171775828434786.html

There could be a lot of future instability in the oil-producing regions. Keep an eye out.

US Debt Ceiling

We are close to the Aug. 2 deadline for raising the $14.3 trillion U.S. debt ceiling. 


I find that this post via PBS effective in describing the situation: http://www.pbs.org/newshour/bb/politics/jan-june11/debtceiling_05-16.html

"If we keep raising the debt limit and keep borrowing more and more money, eventually, markets will lose confidence in the ability of the federal government to repay those debts and the cost of borrowing starts to increase.
If we refuse to raise the debt limit, investors may lose confidence much more quickly, and borrowing costs start to increase. But neither extreme works really well for us in the long run."
Basically, it is a double-edged sword for the markets.
I would avoid companies that take direct subsidies from the Government, as these could change at any time. I would also avoid any companies that make dealings with the Government. I would research commodities and stable overseas and domestic companies. 

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