Friday, December 9, 2011

Oil -USD 250, OIL PALM - RM5,000

Before 2012 year arise, Now I am playing a trick and so predict next year oil can hit historical high, my target price for  crude oil is about USD250.00 and palm oil can see RM5,000. So, are you going to invest. Next year gold and others mining will hit down like mad although there is a war in middle east countries.

There are few reasons to support my view:-
a) US should reduce the budget on investment of defence military force.
b) US face the debt ceiling pressure, so they need to cut budget but politician still happy to deal with weapon distributors. So, they need to use some way to reduce in hand stock of military weapon to enjoy the new order.
c) The supply of oil impact by instability of politic in middle east.(Libya & Egypt). No one care about the oil assets in the country because no one party can ensure the supply chain would not destroyed by someone.
d) Wall Street investors felt worry about the share investment. So, now already started to accumulated some future stock in hand. If the profit margin does not hit double I think they may not interested. So, based on the average price in year 2011 about USD90. It can be easily hit up to 180 and so speculating follower will help that to touch 250.

Malaysia can not enjoy this super rally although we have palm oil supply but most of the gain erase by high inflation and subsidy policy. Based on the above view, what stock we should invest in the coming year?????