An article by Daniel Loh (Aug 2016)
According to figures compiled by Barclays, inflows into commodities mark the best start to a year since 2009, the year when the last bull market started! Statistics are pointing to a similar start of a Commodities Bull Market this year!
More than 14% Return In 6 Months for the Big Boys?!
Investors have pumped more than US$50 Billion into commodities this year as they chased a recovery in oil prices. Oil prices have rallied sharply from January lows as the market slowly rebalanced. The new money, combined with rising prices, have pushed total commodity assets under management to $235B, up from a low of $161B reached at the end of 2015.
In the first half of the year, commodities were the best performing major asset class, outpacing global bonds and equities. Total returns from the Bloomberg Commodity Index (BCI) were over 14 per cent during the 6 months to June.
3 Ways You Can Make Money Like The Big Boys!
How do big boys predict what will happen in the oil market? There are 3 key things that experienced traders track to judge oil price movements. These allow the big boys to identify if the slide will continue (or if the recent sell¬off is just a blip in a recovery).
1. HISTORY always repeats itself!
Crude Oil is now in the start of the Bull Market! The behaviour of crude oil in this FY2016 bull market is EXACTLY just like FY2009. This is what we called the characteristics of a bull market.
Look at the chart of crude oil this year, FY 2016:
Look at the chart of crude oil in last bull market, FY2009:
Did you see history repeating itself?
In the first half of this year, crude oil prices doubled up like in 2009, hit a resistance and fall, before recovering in August. The pattern is exactly the same.
This is what I identified as
“The 3 SECRET phases of a Bull Market”
Learning this 3 Secret phases of a Bull Market, we can easily know Big Players move and shift their funds and play along with them!
If you would like to know more about the different phases of a bull market of all indices including crude oil and how to make money, just click here…
2. Crude Price Will Follow Demand And Supply
from NOW onwards！
Big boys understand that there are times when crude oil prices DO NOT follow the demand and supply of the market. For the last 7 months, we are not in need of crude oil. In fact there is much less demand for crude oil (and its refined products) than their supply!
Inventories around the world are brimming, especially for gasoline, and a revival in U.S. drilling threatens to swell supplies further.
Do not forget US has lifted Iran sanctions this year that will allow Iran to pour 1 million barrels of oil into the market per day!
BUT… BUT…
But how on earth did crude oil double up in price from $26 to $52 within 6 months??
Because there are times we do not have to follow the demand supply curve.
However, situation has changed now!
We do predict that in the next 1 to 2 years, crude oil prices will indeed begin to follow the demand and supply of the market again. Big Boys will definitely fix their eyes in the figures of the demand and supply!
If you are investing in crude oil, crude oil stocks, commodities or US dollar, it is crucial for us to know about 2 important oil statistical figures that will reveal to you the demand and supply of crude oil immediately!
If you would like to know more about what statistical figures that will affect crude oil prices and how to interpret them, just click here...
3. Invest in some good fundamental Oil Stocks for the LONG TERM that are undervalued like Warren Buffett now!
As crude oil continues its ascent over the long term amid this bullish run, Big Boys are picking up some strong fundamental oil related stocks that may be oversold!
Our greatest investor of all time, Warren Buffett is in fact doing it!
Warren Buffett is buying into an oil company that is listed in America called Phillips 66, which is an oil refining company!
Buffett's massive conglomerate is holding a 14.88% stake worth US$6.17 billion and is seen to continuously still buying the shares in recent months to take advantage of the short term price weakness.
I guess that is the hallmark of a great investor, buying into oil and gas related sector stocks that are mostly oversold now because of the crude oil crash these couple of years.
With many oil stocks trading at very cheap valuations, this may turn out to be another shrewd investment by Warren Buffett or the Big Boys again!
If you would like to know more about how to find out UNDERVALUED oil stocks using Warren Buffett value investing strategy, just click here…
Disclaimer: The information provided in this article is for educational purposes only and should not be interpreted as providing investment advice in any way.
