E The Portfolio That Will Double In Three Years

Once all the storage in the world was full to capacity, there was no alternative but to cap wells, or dump new production on the spot market. This led to the price Armageddon that so many investors worried about.

The peace deal with Iran won’t be a huge factor. The country’s oil infrastructure is in such a miserable state that it will be years before it impacts the market in a major way. And, by the way, Iran is also thought to be storing oil it couldn’t sell in a fleet of tankers offshore.

Now, let's look at the demand side. We only need two letters for this one: QE.

We are a mere year into what is probably a 5-6 year program of quantitative easing in Europe. The Bank of Japan continues to dump massive amounts of cash into its own economy. Even China is easing.

In the meantime, the United States is still basking in the glow of its own just-ended hyperaggressive $4 trillion QE strategy. It’s now looking like all of America’s 2016 economic growth will be concentrated in the final three quarters of the year.

This all adds of to a global synchronized economic recovery and much higher oil prices. Personally, I think oil could recover to $70 a barrel in 2017, and to $100 by 2018.

This is why large, long term institutional investors are happy to look across any potential $30 valley that may occur over the next few months and are loading the boat with energy stocks now.

Maybe you should do the same.

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Craig Newman 3 years ago Member's comment

That may reduce your portfolio by 50% with Four Energy tickers when the price of oil can go down to $30 a barrel! Especially $RIG.