Peek Oil delayed

[Mega]

http://blogs.telegraph.co.uk/finance...stponed-again/

Yes & No
Demand JUST under production, but i think he missed the point..........if you are willing to drill to the earth's core Or get Oil via Tar sands...then yes there is "plenty" of oil.

Peek Oil IS peek CHEAP oil!

Mike

[lakedaemonian]

Re: Peek Oil delayed

I just had a read of that, on top of Pritchard's article on how Cameron has "saved" the UK at the last possible second.

I would put Pritchard in the "good guy" category as far as mainstream media economic commentators go...which isn't exactly a ringing endorsement...he is probabaly a bit more right than wrong compared to the rest of the "everything is always awesome" property/bond/share lemmings.

But he seems to have taken a noticeable turn towards positivity in his last couple of articles.....I guess even he can't be doomy 24/7.

What seems noticeably lacking in his Peak Oil article is that while he seems to be focusing on the supply/demand/efficiency "Yin"....he also seems to be conveniently neglecting to mention the fiscal/monetary/currency devaluation "Yang" to energy.

If energy only climbs say 10-20% in price(real) over the next couple of years, that still seems like a better place to hide my duckets than in devalued dollars.

[jtabeb]

Re: Peek Oil delayed

An EVEN better place is to hide your dollars in the companies that are going to be making our transitional energy economy. Yeah, seriously, you should check it out.

Chris,

If by stock you mean stock in private companies, I entirely agree. As I told subscribers six months ago when I set out to look for alternatives to diversify out of our nearly 10 year old gold and Treasury bond portfolio, the only under-priced asset I could find is entrepreneurs. The value of entrepreneurs has been beaten down by two successive busts over our gold and Treasury hold period. In the wake of the recession, despite talk of recovery, early stage companies are not getting funded at any price that two years ago would have been. The severe reduction in the stream of new start-ups coming on line has grave implications for the U.S. economy. In March, I conveyed my concern in an Investor's Business Daily article.

I spent many hours talking to fund managers and regulators to find a way to put iTulip subscribers who are potential start-up investors together with those who are entrepreneurs in some kind of fund, but the regulatory hurdles are insurmountable. Blue Sky laws make it impossible for any but high net worth households to invest in private companies. Regulators are perfectly glad to allow anyone to invest in poorly regulated public FIRE Economy industry companies and take tremendous losses as a result, but assume that the average person's judgement is not sufficient to determine the risk of investing in a fund that invests in early stage companies, the lifeblood of our economy.

I haven't given up on my investigations. However, continuing my now 12 year old project to manage my own account in public as a way to give an alternative perspective to the din of stocks and houses Wall Street media sales pitches that passes for business news in the U.S. is vastly complicated by the fact that I am moving into asset classes that are inaccessible to the average reader. This may force a decision to move to a subscription-only business model and the elimination of the free area of iTulip.com. That decision has not been made but is under consideration.

Out of those investigations of start-ups came two investments that I made this week that I will share with readers in time when it's appropriate. I recently sold some, not a lot, of gold to diversify into one of these two start-ups. The other I invested in out of a "cash" account (liquid short-term bonds). From my perspective, selling a portion of a gold allocation that is up 4.7 times since I took it makes sense, even if I expect gold prices to rise further. Why? Because I believe that my portfolio is over-weight gold and because I believe that the return on investment in these start-ups will be greater. I'm looking to increase my IRR without increasing risk. Another option for diversification that we will investigate are MLPs. Think of it as a continuation of my sales of technology stocks in 2000: sell stocks at a bubble high, sit in cash and Treasury bonds for a year, take a gold position at a 20 year low in gold prices, sell some gold and bonds at all time high prices to buy into technology start-up companies priced at a 20 year lows. The core gold position that hedges Ka-Poom, of course, remains untouched.