Just as Crude Oil is traded back down, let me take this opportunity to show you just how many times the bears have been wrong consistently and are nothing better than an ordinary flip-flop:
What we have is a consistent fingers pointing at the speculators. And when they can't figure out why oil prices are high, they call it a bubble; when prices are low, they said the bubble has popped. We have consistently and repeatedly said that is not the case. Our thesis has consistently be: Crude Oil is in a secular bull market and will have its share of corrections along the way. We are not smart enough to figure out where's the top and bottom, but we believe those who are fingers pointing at the speculators and naming the high oil prices a bubble phenomenon will eventually flip again, just like they did many times before. There's nothing new under the sun -- human behaviour never changes.“Oil prices have soared from $32 a barrel at the beginning of the year to an all-time high of $50 a barrel... in large part, speculation. Fundamentally speaking, oil prices should today be in the high-$20-a-barrel range.”
-- National Review 2004
“Mr Forbes, publisher of Forbes magazine, said the price of oil, which peaked at more than $US70 a barrel on Monday as Hurricane Katrina headed for the US Gulf Coast, was unsustainable, 'sheer bubble speculation.'”
-- Forbes 2005
“Oil prices are likely to return gradually to earth -- which probably means a sustainable $40 a barrel.”
-- Times Online 2006
“After weeks of setting records near $100 per barrel, oil prices retreat. Analysts wonder whether this is the start of a bigger tumble.”
-- BusinessWeek 2007
“The roaring oil boom of the last few months may be on its last legs as economic growth slows hard across the world and a clutch new refineries come into operation, Lehman Brothers has warned in a hard-hitting report.”
-- 2008
“Speculators are largely responsible for driving crude prices to their peaks in recent weeks and the record oil price now looks like a bubble, George Soros has warned.”
-- 2008
We at bhc investment would like to urge our readers to stay focused on the long-term secular trend. If you are easily swayed by the market sentiments, you are no better than the herds who buy highs sell lows. That's not what we wish our readers to be.
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