Saturday, October 25, 2008
Go with the flow
As the price of oil continues its downward spiral, I am reminded of a saying: Don't fight the market. I can not count how many times I have thought to myself that a stock had dropped to a great price only to see it continue to drop like a lead balloon. It always turns out that there was a reason for the stock's price dropping. I just wasn't privy to it. The same with oil. There's a reason the price of crude oil is dropping. There are forces at work which we don't understand. I think one of those forces is the amount of research being done on bringing electric cars to market. Very rich companies can afford to hire very smart people to research the role of electric cars in the future. Just like Bill Gates and Steve Jobs were smart enough to see the coming personal computer revolution, there are people working for the oil companies (google Exxon) who are smart enough to see the coming electric car (bike, motorscooter, etc.) revolution. A paradigm shift is coming. Maybe oil will be obsolete on Dec. 21st, 2012 and the winner will be whoever can exchange all of their oil for the "new" gold by then.
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