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Marathon Oil: Profit From Rising Prices Now
Posted February 22, 2012
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By David Sterman
The U.S. consumer remains in a precarious state. Wages are rising at a slow pace, keeping many workers from boosting their earning -- and spending -- power on an inflation-adjusted basis. In fact, consumers may start to feel that they are losing ground if gasoline prices hit $4 a gallon this spring, as many economists now expect. The price of West Texas Intermediate Crude (WTI), the benchmark for U.S. oil prices, has been surging lately, and seasonal effects imply "pain at the pump," come this spring.
I've been thinking about oil prices as I review the holdings in my $100,000 Real-Money Portfolio. Stocks such as Ford (F), Alcoa (AA) and Hasbro (HAS) could all be vulnerable to rising oil prices if consumers start to retrench.
To hedge against such a possibility, it's time to add exposure to crude oil. If prices do indeed rise, then an oil producer is likely to see its stock rise by a significant amount, as was the case in the oil "Super-Spike" of 2008. READ FULL ARTICLE HERE
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