Thursday, March 5, 2015

Buy oil for rebound trade and Gold bottoming

We had a very sharp drop [in Oil prices] and markets don't go up in a straight line and don't drop in a straight line so I think we can have a rebound here. Some oil stocks are reasonably valued. 

Most analysts now predict Oil can drop to $20 a barrel whereas a year ago they were all predicting it will go up to $150 a barrel. So there is a chance that oil is kind of bottoming out here. But I wouldnt bet too heavily on an a major low. But I would bet on a rebound. I think oil stocks and oil servicing stocks could rebound.

Equally Gold shares are the most attractive within the equities market. They've been hammered over the last 3 years and are showing signs of bottoming out.