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Monday, April 25, 2011

Ohio Oil and Chesapeake Could Be "The Saviors of the Rust Belt" -- Incredibly Interesting Interview

Link here.

Some data points from an interview with an analyst in The Wall Street Journal:
  • The analyst thinks the Fed is actually doing a pretty good job "balancing declines in M3 with adding to the monetary base to prop up the money supply."
  • "Crude is trading as if the Fed will continue to debase the dollar, and I think that is the most likely scenario going forward."
  • The analyst: "If you did nothing but sell master limited partnerships (MLPs) when the VIX is 15 or lower and buy MLPs when the VIX is 25 or higher, you'd make money over time. It's easier said than done, but if you think about it, that is essentially the Warren Buffett investment philosophy, which is very, very patient capital, look for your entry point and buy value." 
  • The analyst: "The biggest long-term trend that we're seeing now is the retirement of coal fired power plants in the United States, for actually non-greenhouse gas reasons, although that could potentially be even more additive to that trend over the long term.the third trend is really the explosion of oil and liquids plays in the United States in some pretty weird areas. For example, the most interesting new play prospective - and we'll see - but Ohio could actually become a pretty big producer if acreage held by Chesapeake and EV Energy Partners turns out to be prospective. So we'll see, but I think that oil production in Ohio could be the savior of the rust belt."

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