So much for the bottom in oil…
After months of watching insiders, billionaires and investors pour money into the long side, oil just dropped below $32 a barrel, as production outpaces global demand, even though producers have cut billions in spending and reduced drilling.
That’s the first time this has happened since 2003.
These days, Goldman Sachs isn’t the only group calling for $20 barrel oil. Morgan Stanley just jumped on the bandwagon, believing oil could fall to $20 if china moves to quickly depreciate its currency. “$20-$25 oil price scenarios are possible simply due to currency,” noted the group.
Even Jim Rogers believes oil prices could be driven to new record lows.
None of this should come as a shock, though. I’ve been warning about oil and those calling for a bottom since late 2014…
If you’re thinking of chasing oil prices here, don’t do it. As many investors have learned the hard way, it’s just not the time. But trust me on this. Once that bottom is in place, we’ll dig through the undervalued names… and make great money.