-- Posted Wednesday, 26 May 2010 | Digg This Article | | Source: GoldSeek.com

Rick’s Picks

Wednesday, May 26, 2010

“Phenomenally accurate forecasts”

Now wasn’t that refreshing!  The Dow did a nearly 300-point dipsy-doodle yesterday, providing comic relief for millions of investors who might otherwise have spent the day fretting over the oil spill and North Korea’s quasi-declaration of war.  Earlier in the day, before NYSE stocks staged an epic recovery from abysmal lows, both of these developing news stories were cited by pundits as reasons why the broad averages had plummeted on the opening bell. How silly of us to think that Wall Street might actually have been concerned about Kim Jong-il’s next move, or about the mounting catastrophe that threatens to destroy the Gulf of Mexico’s ecosystem and shore-based economy, if not the economy of the entire U.S. Perhaps when globs of tar start washing up in the Hamptons, and the livelihoods of fisherman from Maine to Galveston are threatened, perhaps then stock-market speculators will act for once like they have a stake in the real world.

In the meantime, it’s hard to tell which is more threatening:  a nuclear-armed, certified whack-job spoiling for a fight with his neighbor to the south, or an oil gusher that could turn most of America’s coastline hostile to humans and deadly to waterfowl and marine life.  We supposed we’d rather take our chances with Kim Jong-Il, since there’s always the remote possibility he’ll wind up like Mussolini and those lovely Ceausescus. But the oil-spill story seems to be getting worse by the hour, and it has the potential to replace “American Idol” as bozo-dom’s number one obsession if British Petroleum’s attempt to plug the leak with a “top kill” fails.  Failure was evidently a risk, since the oil may be gushing too hard for the tactic to work, according to some engineers. There were also rumors that the sea bed had collapsed and that trillions of cubic feet of methane could ultimately be released into the atmosphere. If so, investors who survive would surely want to tune to Cramer’s show, since he’ll be the first to come up with a list of publically traded companies positioned to make out like bandits. We can’t think of any such companies ourselves, but that doesn’t necessarily mean that the end of civilization as we know it will not have investable consequences for the lucky few.

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Wednesday, 26 May 2010 | Digg This Article | Source: GoldSeek.com

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