Wednesday, April 06, 2005

Be Wary When Wall Street Firms Predict Price of Oil!

The American Thinker - Noel Sheppard

Noel Sheppard gives good advice I think.

He says:

Oddly, according to Bloomberg, the Energy Department had this to say just 24 hours earlier:

“Stockpiles gained 5.4 million barrels, or 1.7 percent, to 314.7 million in the week ended March 25, the biggest increase since October, the report showed. Supplies are 9 percent higher than a year ago.”

This begs the question: Why would one of the most respected brokerage firms in the nation make such a prediction when the inventory data is suggesting the oil
shortage that has been squeezing prices higher for the past twelve months seems to be waning?
To better understand just how hot energy stocks have been of late, and why securities companies across the globe have such a vested interest in keeping oil prices from falling, one only needs to look at the frenzy for oil related initial public offerings that has occurred in England recently.
Sound a bit like what was happening to Internet, dot-com, and technology stocks in the first quarter of 2000? Do you remember what brokerage firms and their analysts were saying then? These stocks were all going to just keep going higher, and higher, and higher, right?

Well, ladies and gentlemen, Caveat Emptor: The time has come for Americans to be fully educated as to how the brokerage community works.

So, don't say you weren't warned!!

WWW MyView