For Immediate Release:
September 12, 2006
Contact: Ian Mathias 410-864-1652 imathias@agorafinancial.com

www.dailyreckoning.com: Energy and Commodity Markets Slump…Is it Time to Sell?

Baltimore, MD:  By the clang of yesterday’s closing bell, crude oil and gold both fell to their lowest prices in months.  Widely considered the shining stars of a long-standing energy and commodity bull market, some investors fear that yet another bubble has burst, and that the prices of precious metals and non-renewable resources are on their way back down.  Often considered a hedge against the dwindling value of the dollar, many investors holding onto their favorite commodity and energy stocks are asking, “Is it time to sell?”  

“Over the next several months, it will be crucial to maintain a multi-year investment focus with energy and commodity oriented stocks,” said market expert Dan Amoss, CFA. The CRB Commodity Index recently broke below its 200-day moving average, which many believe marks a bull-to-bear market transition.  Amoss, who admits that these markets are certainly in the midst of slump, still believes that certain energy and commodity investments will experience a strong rebound.

“Bull markets are prone to periods of overheating,” said Amoss yesterday in his financial advisory newsletter Strategic Investment.  Market prices, according to Amoss, are just one of many indicators to a stock’s true value.  “There are many commodity companies with reserve and production profiles that remain very profitable even below spot prices,” commented Amoss, “and buying opportunities are developing in the best-positioned players.”

“Greed and fear overwhelms rationality on the way up and on the way down,” wrote Amoss yesterday as he recommended two stocks in this sector to his Strategic Investment readers.  “There is no doubt that we are undergoing a consolidation,” said Amoss, “but this should be viewed as an opportunity, not a reason to panic.”  

Dan Amoss, CFA, is the editor of Strategic Investment, as well as a contributing editor to both The Daily Reckoning and Whiskey & Gunpowder. Before heading Strategic Investment, Dan served as an analyst for the ICM Small Company Portfolio, one of the top small-cap value mutual funds over the past 15 years.

A product of Agora Financial, The Daily Reckoning is written by New York Times best-selling authors, Bill Bonner and Addison Wiggin. The Daily Reckoning is a daily, free e-letter that weaves information about the financial world, investing, and everyday life into an educational and entertaining format that has been engaging readers for over seven years.

SOURCE: http://www.dailyreckoning.com 

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