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Investment implications for oil, gold, silver, stocks of the Arab Revolt 2011

Posted on 25 February 2011 with 2 comments from readers

It is a long time since Lawrence of Arabia led the successful Arab Revolt of 1917 to throw off the tyranny of the Ottoman Empire. The 2011 Arab Revolt is a far more home grown affair, and far more disunified, even within tiny countries like Bahrain and has turned into a bloody civil war in Libya.

But with oil prices above $100 for the first time since the Oil Shock that came before the 2008 global crisis, investors are bound to be thinking what next? This will be the focus of the March issue of the ArabianMoney newsletter published next week (click here to order your copy).

It is one thing to spot the right trend, another to get the right investment instrument to make money on it, and that is where our subscription newsletter is an invaluable help, containing information that for legal reasons we cannot supply free-of-charge.

Major trends

In the meantime we can only note that what is happening is a crystalization of many of the investment trends that we have been following on the ArabianMoney website for sometime, notably:

– That global stock markets have rallied far too fast, and that the last time they did this in the mid-30s it ended with the 50 per cent crash of ’37 (click here).

– Silver is going to be the best asset class to hold this year, outperforming gold, even if a stock market correction brings silver prices down first (click here).

– The US economic recovery is far too weak to last, housing trends show a double dip is coming and higher oil prices make this inevitable (click here).

– UK housing is also set for a big fall this year (click here).

– Euro zone sovereign debt crises will return to further destabilize global financial markets (click here).

– The China growth story is almost over (click here).

– Emerging markets are a weak spot for investors now, and not an opportunity (click here).

– Bahrain’s loss is a gain for the UAE as a safe haven: stocks and real estate will benefit (click here).

Posted on 25 February 2011 Categories: Banking & Finance, Bond Markets, GCC Economics, GCC Real Estate, GCC Stock Markets, Global Economics, Gold & Silver, Hedge Funds, Investment Gurus, Oil & Gas, US Dollar, US Stocks

2 Comments posted by readers:

Comment by obewon - 26 February 2011

Good commentary!

And a great reference to prior commentaries on this site!

Comment by Girish - 28 February 2011

The whole scenario seems quite bizzare. Doesnt a spike in oil send the currency market up? and vice versa….? Then how is the pound, yen and euro going up at the same time as oil, gold and oil….!! Is real estate the only bug bear in this market..!!!

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