Thursday, November 12, 2009
Are you looking for the best investment? Believe me, it is not your typical CD. Tie your money up in that and you will loose value as inflation kicks in. And inflation will kick in as the the Federal Government keeps printing bogus dollars that nobody else in the world will want.
When I think of investments I think of things that will be in demand. Over the next several years the demand for crude oil will continue to increase. They drive cars in India and China now! And other countries, too. The rest of the world is also playing a larger role in manufacturing. All of this takes energy. As oil reserves are drained in many parts of the world there will be increased pressure to find new resources. Therefore, there will be increased pressure on drilling companies and especially deep sea drilling. The best of these companies is Diamond Offshore, Transocean, and Noble Corp. The stock price on all three of these companies is going through the roof. The most reasonably priced of these three is Noble Corporation. Additionally, every analyst has rated them as a "buy" or "strong buy."
And guess what? Right now is the best time to buy. Oil demand and prices have stayed steady and my actually go a little lower through the winter. Then next spring..... up they will go! Demand will increase as the economy recovers and as the driving season begins. But corporations like Noble are contracting right now for more deep sea drilling services. Their deep sea platforms bring in over $400,000 daily, per platform. In the foreseeable future things look bright.
We have owned their stock for about a year now and already the stock has doubled. It looks like a good investment to me. But stick with your CDs if you want to.