The Big Q: Red, as an investor/player, should I be worried about the unrest in the Middle East?
The Big A: The revolution in Libya pushed Crude Oil prices sharply higher last week as unrest in the Middle East escalated. The price of Crude Oil rose US$7.00 closing near US$100 bbl, 8.5% increase. And my work shows that it could go higher, even though the World is awash in Crude Oil.
I learned today that a viral message is spreading via Facebook and other social networks in the same manner it did just prior to unrest in Libya, Egypt, Oman and Bahrain organizing a protest in Saudi Arabia on March 11.
Some believe that unrest Saudi Arabia could push Crude Oil to US$200 bbl, it is not out of the question.
Saudi Arabia is OPEC's largest producer accounting for about 10% of the World's Crude Oil production daily, so any significant popular unrest there could be harmful to the World's economic recovery.
Gasoline is already in the US$4 range in California and other Western states, and that means that folks are now paying up to US$100 to fill their tanks. Some weekly and some twice a week.
So far that raise will not harm the recovery but if that would say double at US$8.00 gal. It would be tough on folks commuting to and from work
But as an investor/player there is no reason to really worry over the Middle East chaos.
Here is why;
Yes, the unrest is spreading, and some investors are getting hammered bouncing from trade to trade without a plan void of emotion.
I have learned that most things based on pure emotions is most often costly, it is very true when it comes to investing.
Investors and players who are disciplined, follow a plan, leave their emotions parked away from the action, and win.
They are the ones who know in advance when they are going to sell, and limit their losses when the market turns against the trade.
I've seen it happen time and again.
For the past many years I have been telling my readers to turn off and tune out the financial news, aka Noise.
Winning trades are made on the back of knowledge and planing, my adage is, plan your work and work your plan.
That way, investing with care and wisdom, allows peace of mind and restful sleep no matter what is going on in the macro-economy and geo-politically, be it the price of Crude Oil, Quarterly earnings, new housing starts, or any other economic or political News of the day.
Real investor/players are worried about the stuff going on around the World, they use it to make money and Win.