THE RETURN OF OIL (ALMOST LIKE IN THE RETURN OF THE JEDI)

we’re going to kick right off with the hotspot sector of the moment: energy. Like most commodities, energy is a very cyclical business. It runs from boom to bust over medium-term periods of time. In other words, these boom-and-bust cycles tend to last only a few years at a time.

Oil is a vital ingredient in the world economy and by the look of recent media reports, the world has attacked this source of energy and has deemed it replaceable. Green energy is all the rage currently but considering the total percentage of energy it supplies worldwide today, it’s actually irrelevant.

Don’t get us wrong, we’re all for green energy, we’re just realistic about how much it’s likely to contribute to the bigger picture over the coming decades. In short, oil is still here to stay, especially as low prices (in our opinion anything below $80 per barrel is low) will make green energy look awfully expensive.

We strongly believe energy stocks will rebound in the next two years and the rebound will be so large that it’s a sector we must invest in.

There are several factors that will cause energy prices to rebound in the coming months and we will examine the most relevant ones. Before we list the factors, we point out that many of these