The Perfect Trade

When the stock market has it dead wrong, misprices assets and you can take advantage, that’s the perfect trade. Listen to this Financial Sense audio to find out how.

Based on the flood of information this year describing the peaking of oil supplies, there is no doubt that oil supplies are going to drop and keep on dropping. Wouldn’t you expect that the price of oil five years out would be much higher than today’s price?

Right now, oil for next December (2011) is priced at $91.60. And we know that oil supplies will get tighter. Right? Wouldn’t you expect higher prices in the future?

Then how come the price for oil in December 2015 is predicted at $90.26? That’s a dollar and thirty four cents cheaper than the price predicted for December 2011.

The market is telling us that oil is going to be cheaper in the future. Huh? Where can I bet against that?

Listen to the audio.