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Oil $100, Gold $1440, Silver $35, Gas $4: Risk-Reward Ratio: Priceless!

Almost every-thing I mentioned in subject of this blog is giving strong indications that inflation is coming. Oil has crossed $100, Gold is back above $1400, Gas is almost nearing $4 and Silver is at all-time high. Some of these are due to un-rest in Middle-east while most of it due to strong growth and demand across world. Are central banks behind the curve in raising interest rates ? They were behind the curve in cutting them in 2007 and now it looks like they may be behind the curve in raising them. I don't blame Bernanke since he would rather have little bit of inflation provided growth than fear of deflation and double-dip.


Last week, DOW had multiple moves over 100 points indicating that markets are uncertain about its direction. DOW is stuck between 12000 and 12500 and S&P between 1300 and 1350. Most likely Q1 results or something significant in Libya would help in breaking it out of this range. In all the Mid-east news, people forgot about trouble in Europe especially Portugal's debt. Remember May 2010 when Greece brought markets across the world major correction. This could happen again in May 2011.


So in this uncertain markets, here are some investment ideas - mostly focused on energy sector:

  • Hercules Offshore (HERO) at $5.5
  • Sandridge Energy (SD) at $10.50
  • And for most aggressive investors, ERX at $77
Just saw The Adjustment Bureau movie. It's good plot and having Matt Daemon in the movie makes it more interesting. It has some hints of Minority Report as well as Inception ! If you enjoyed those movies, you may like this also. 
iPAD2 is out - plan to buy next week since I was waiting for this announcement for couple of months. As always, great launch by Steve Jobs. What is amazing is that with product like "Smartcover" which is as low -tech as it can get, Apple could potentially generate Billion $ revenue. Hats off to Steve and Apple !

/Shyam 

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