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No. of Recommendations: 3
Oil prices keep plummeting towards my stated target of $35. Maybe even lower. Here is a newsreport that claims reduced oil consumption over the next 5 years:

http://www.rediff.com/money/2008/dec/08oil-consumption-forec...

IT seems as if investment in oil and metals will pay rewards only in long term now. 10+ years. I never could imagine the commodity prices heading towards yr 2000. It is almost as if the boom never existed. I just returned from a 3 wk trip to India. The prices of all construction materials and real estate are crashing rapidly. Almost all industries are sitting on excess capacities. Very similarly to the tech crash, a relentless demand in commodities and real estate was expected. Not anymore. It has taken 8+ years for the tech firms to stabilize and it will probably take another 5 years for significant growth to reappear. Commodities and real estate may see similar such 10-15 years cycle ahead to resume growth.

It was not long ago that I was critizing TMF for missing the commodity boom but now their approach of going after great firms rather than sectors seems so wise.

Anurag
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