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3 Ways to Play Rising Oil Prices

February 23, 2011

    by Jerry Robinson

    Good morning friends! In the news today: Brutal conflicts in Libya and fears over Saudi Arabia drive oil prices higher, how to play rising oil prices, the 401k generation falls short, and more…

    Uncertainty Reigns in Markets… The descent of Libya into brutal violence shook the global financial markets on Tuesday. Gaddafi under fire; vows to fight to the ‘last drop of blood’; orders sabotage of country’s oil facilities… Most of the major global indices were down on Tuesday… the Dow fell by 178 points — its biggest drop since Nov. 16. The S&P 500 index fell by the largest amount since Aug. 11. Oil prices made major headlines: up over 9% at one point yesterday…The VIX (the market’s fear gauge) staged its biggest jump since June, rising 30% yesterday…

    And now… Fears of a civil war in Libya which could choke global oil supplies and drive up gas prices… oil now over $97 per barrelGas prices hit $4 in CA… $5 per gallon coming soon?

    Saudi King now bribing citizens to fend off any potential uprising… If protests spread to Saudi Arabia, expect $140+ per barrel…

    How to play oil? Any of the oil majors give you exposure: COP, XOM, CVX among others.

    These, however, are susceptible to the U.S. financial markets…

    3 ETF’s that give track oil prices:

    USO (tame way to play oil price)

    UCO (2x the oil price – bring your nerve medicine)

    ERX… (3x – like a bad rollercoaster)

    Caveat emptor…

    What about gold and silver? Both popping on news of the Mideast unrest… Owning physical metal a very good idea. Watch our latest precious metals investing 101 webcast for free investing ideas…

    401k’s Not Cutting It… “The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement…” Read more…

    Overconsumption and undersaving are apparently beginning to catch up with a largely “pension-less” generation… It all boils down to financial education to survive from this point forward… The mainstream media leads astray: corporations, financial institutions, and ad agencies fight you to the death for your hard-earned dollars… Hand them over at your own risk… It’s time to stop consuming everything and instead, save and invest for the future… Empower yourself with financial education. Good place to start is here

    Also in the news…

    1) Entitlement-crazed protests in Wisconsin continue… “It’s about rights, not about money” Hmmm?

    2) POUND REBOUND: 3 of 9 members have voted in favor of a rate hike by the Bank of England.

    3) Corn production has fallen to a 37-year low… USDA predicts that global inventories will continue falling; Cocoa surge to 32 year highs…

    4) Over 100,000 protesters in Bahrain turned out yesterday for the largest opposition rally so far…

    5) Providence plans to pink slip all teachers… Dems to Unions: “It’s time to get bloody

    Finally… The White House is appealing a court ruling which calls its “anti-terrorism” tactic of warrantless wiretapping illegal…

    Why So Serious?… It’s time to laugh a little.

    “They say President Lincoln once walked three miles to pay back a penny. That makes him the last president to do anything about the debt.” –David Letterman

    “Happy Presidents Day. This is a day when we celebrate history by getting great deals on mattresses.” –Craig Ferguson

    Until tomorrow,

    Jerry Robinson –


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    Jerry Robinson is an economist, published author, columnist, international conference speaker, and the editor of the financial website, In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour long radio show dedicated to deciphering the week’s economic news.

    Why Higher Oil Prices Are Good for Silver

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