Tuesday, September 16, 2008

Airlines Soaring, Financials Stable, Energy Down

The price of oil has fallen to $91. The price of gasoline should be below $3 per gallon in a few weeks.

Mortgage rates continue to decline. Real estate at a place like Myrtle Beach is about to get a shot in the arm, lower gasoline costs and lower mortgage rates will increase the occupancy and the rental rates while lowering the cost of operation.


Big news is being made in regard to Merrill, AIG, and Lehman while traditional banks are moving up in price. A regular reader sent me a comparison of BB&T and Wells Fargo the other day and both banks are solid. The big turn will be with the riskier banks.

In the past few days, I have become all the more aware of how "brain washed" the public has become. Very informed and intelligent people believe that half of all the oil in the world has already been used. Less than 8% of the known oil has been used. The trap is that half of the recoverable reserves using last years technology and last years price has been recovered.

I have talked about this turn for about 2 years, I hope you are taking advantage.

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