…During such uncertain financial times, investors often look to gold as a store of value — which is certainly fine if you’re seeking a safe haven for your money. However, given the forces driving the markets today, and our outlook for oil prices, we recommend hedging your portfolio with “black gold” as well — specifically focusing on oil services stocks.
On the basis of fundamentals alone, I began the year expecting oil to rise above $100 a barrel early in 2011, and I said as much Jan. 18, going “on record” in a national TV interview. However, in late January, a barrel of West Texas crude was trading in the mid-$80s. …