----- Forwarded Message ----- From: Energy and Capital <[email protected]> To: [email protected] Sent: Tuesday, 3 January 2012, 17:19 Subject: What's That Crazy Ahmadinejad Gonna Do? Forward to a Friend Having trouble viewing this issue? Click here.Refer a Friend to Energy and Capital. What's That Crazy Ahmadinejad Gonna Do? By Nick Hodge | Tuesday, January 3rd, 2012 Over this New Year's weekend, I mused about India and China increasing their national petroleum reserves and about Israel, Iran, and $150 oil... Here's aReuters headline and first sentence from this morning: Oil above $110 on Iran, China Data Crude oil rose above $110 a barrel on Tuesday as tension between Iran and the United States stirred fear of a possible disruption to oil supplies from the Middle East and as Chinese data showed economic activity increasing. That price was for Brent, U.S. crude was up over $102. And the news is only getting more interesting, with the rhetoric — both governmental and media — only getting stronger. We're starting to see phrases like “cut off oil exports from the region” and “shut the Strait.” The Ayatollah's have warned they'll “take action” if U.S. aircraft carriers return to the Gulf. Iranian Army Chief Maj. Gen. Ataollah Salehi told the world: The Islamic Republic of Iran will not repeat its warning... the enemy's carrier has been moved to the Sea of Oman because of our drill. I recommend and emphasize to the American carrier not to return to the Persian Gulf. I advise, recommend and warn them over the return of this carrier to the Persian Gulf because we are not in the habit of warning more than once. In the past week, Iran has produced its first nuclear fuel rod and test-fired two long-range missiles. France is urging the rest of Europe to join the United States in imposing sanctions such as an embargo on Iranian oil exports and a freeze on its central bank assets. Advertisement Forget Everything You Know About the Bakken Most estimates for the sweet light crude reserves in North Dakota's Bakken Oil Pool are in the 4-6 billion barrel range. But the CEO of the biggest Bakken oil company says there's as much as 24 billion barrels. That means your Bakken oil stock profits are about to get a LOT bigger. You can watch the incredible video footage HERE. Dog and Pony On the financial side, at least, no one's buying it. I saw a representative from an international Swiss consultancy call it “a public relations show.” The term “saber-rattling” has become hackneyed in three days' time. But Strait blockage or not... Nuclear tit-for-tat with Israel or not... Embargo or not.. Only one thing is certain and real: As the same Swiss consultant said, whether they have teeth or not: “In this environment of increasing tensions and rhetoric, global asset managers are unlikely to give up their long exposure to oil.” Easy Money It isn't like we haven't seen this show over and over for the past three decades. The first thing I did this morning after seeing the Iran news was click over to my brokerage account. My investment in Transocean (NYSE: RIG) was up nearly 4% in premarket — almost as high as the Dow went up all of last year. And Transcocean wasn't alone... Major oil companies with market caps half a billion or higher were making similar or bigger moves. By lunchtime, TransAtlantic (AMEX: TAT), Tesco (NASDAQ: TESO), Suncor (NYSE: SU), and plenty of others were marching even higher. Owning a simple oil ETF like the ProShares Ultra DJ-AIG (NYSE: UCO) would've made you more than 7% richer already this year. This isn't brain-racking, intensely-researched, needle-in-a-haystack stuff; this is political unrest in oil's most fertile region driving up the commodity's price — and therefore, the value of companies that operate in that sector. And you should be putting it to use for your bottom line. Advertisement A Little-known Options Play Has Just Tripped the "R-4 Trigger" Which means, approximately three weeks from now, you'll have the chance to cash in for gains that could earn you $680 for every $1,000 you put in. Even better, you'll have the chance to do this about once per week going forward. Learn more here. Think about your goals... Are you running for office? Are you the head of an NGO? Are you the chairman of an international non-profit with billion-dollar resources? If you responded "no" to all those questions (I certainly did), then you needn't take an ideological stand on the issue. Forget the water cooler chat about how crazy Ahmadinejad is. Quell that inner monologue debating U.S. policy on Israel. Unless that stuff has a direct bearing on your day-to-day life and finances, it's a mere distraction. Always wear your investor's hat. And always be thinking not of the outcomes and intricacies of international and domestic events, but of how you can put them to financial use for you. And then act on them. Spending a few minutes buying Exxon (NYSE: XOM), Chevron (NYSE: CVX), or any of the other big names in your IRA this morning would've already been worth the effort. You would've enrolled in a 2%-3% dividend program that far beats the return on many other “safe” investments out there. No one is going to capitalize on the opportunities for you... You have to do it yourself. Call it like you see it, Nick Hodge @nickchodge on Twitter Nick is an editor of Energy & Capital and the Investment Director of the thousands-strong stock advisory, Alternative Energy Speculator. Co-author of the best-selling book Investing in Renewable Energy: Making Money on Green Chip Stocks, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page. Related ArticlesAttacks on Iran: The Latest in Cyber Warfare Of Israel, Iran, and $150 Oil Crude Oil Prices Surge Oil Futures Continue to Rise
From the Archives...Energy and Capital's Weekend Edition2011-12-31 - Nick HodgeTaking Control and Moving Ahead2011-12-30 - Nick HodgeThis Could Be The Big One for the Middle East2011-12-29 - Keith KohlIs It Time to Buy an Electric Car?2011-12-28 - Jeff SiegelYear-end Recap and 2012 Anticipation2011-12-27 - Nick Hodge This email was sent to [email protected] . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.