NAMI News
The latest trinational news.Monday, June 22, 2009
Energy Stocks Will Surge When the Recession Ends:
Bloomberg, June 22, 2009 - “The U.S. produced about 88 percent more oil in 1970 than it does today. Production has been declining for 39 years since hitting that level. When will world oil production peak? Many energy experts believe it already may be happening or will within four years. One of them is Matthew Simmons, head of Houston-based Simmons & Co., an investment bank specializing in the energy market. His 2006 book, “Twilight in the Desert,” popularized the idea that Saudi Arabia has less oil than widely supposed—and that therefore the world has less of the fuel than we think. The theory is controversial, though I believe it. Finds of monster oilfields are rare these days, and depletion of existing fields is quickening. That’s one reason the portfolios I manage tend to be heavy in energy stocks. Energy stocks may be especially timely now. They usually do quite well after the end of a recession. No one knows when the current recession will end. A few months ago, most economists were guessing 2010 or 2011. Today, many are predicting it will end this year—a view I share.
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