Four Ways to Profit from Oil Bust 2008

As long as the wildcards of the world continue to control even a thimble full of oil, prices of the most demanded, precious commodity on the face of this planet will remain turbulent.

For example, the day after Christmas, the fourth-biggest oil producer and earner of $50 billion a year in exports — Iran — announced that it would bully full steam ahead with its civilian-based nuclear generating plan. Meanwhile, an oil pipeline exploded in Lagos killing more than 200 people who were siphoning crude from a thug-punctured pipe.

The unnerving news on both fronts sparked an initial rise in price to as high as $63.20 a barrel, then dropped throughout the day when fresh reports of warmer-than-usual winter weather might lower demand.

The government of Iran, oil thieves and Mother Nature...now that's a trio guaranteed to toss a few surprises our way.

Predicting the price of oil isn't going to get any easier nor is it going away in our lifetime or yours, but we at Financial Intelligence Report think we're pretty close to mastering it.

In fact, we are calling "checkmate" on further short-term hikes in oil prices in 2008.

No doubt, a huge part of winning this game hands-down was not getting caught holding the slippery oil stocks you bought when crude was at $60 or $70 a barrel.

But that is yesterday's news. The good news today, and what we specifically focus on in, "Four Ways to Profit From Oil Bust 2005," is how you can profit during the next substantial slide in oil prices in 2008.

In this FREE special report, we reveal four investment opportunities capable of 50% to 100% profits in 2008 and beyond. Get your FREE report today by clicking here.

Here at FIR, we've been right about the price of oil for some time. Two years ago, our readers made a killing when we predicted oil would shoot to $60 a barrel with gains like +75% in Oil Service Holders Trust, +169% in Diamond Off Shore Drilling, +49% USGI Global Resources Fund, +83% Devon Energy Corp. and +41% in Exxon Mobil just to name a few.

At that time, the energy climate — and our convictions — changed in one fell swoop. After selling these stocks and locking in monster profits for FIR readers, we then released the inaugural version of "Profiting from the Coming Oil Bust," in September 2005.

At that time, Financial Intelligence Report said, "If we are right in our conviction (of falling oil prices) — we are about to embark on a punishing bear market for certain oil stocks."

Since then, oil has spiraled from a peak of $78.40 a barrel set on July 14, 2006 to a bottom of $57.05, after inching up to around $60 a barrel recently. That's a 27% plunge in a matter of months!

This double-digit shift from crude black to blood red, so far, has had relatively minor implications on some of the biggest oil stocks: From peak to valley, Hess Corp (HES) plunged 28%; British Petroleum (BP) fell 17%; Murphy Oil (MUR) dropped 13%; and ConocoPhillips (COP) and Occidental Petroleum (OXY) lost 13% and 12%, respectively, in less than six months.

But it could get much, much, much worse.

We feel that it is very possible that oil is on the verge of receding to the high $30s or low $40s.

So we are once again alerting investors about this huge opportunity for profit. Get our four top recommendations in our FREE special report: "Four Ways to Profit From Oil Bust 2008."

A couple of the exciting opportunities in this new special report focus on the survivors, those companies that implemented plans or strategies that prevented rising oil costs from breaking their banks, and, now they're perfectly positioned for big profits. We're talking the potential of delivering 50% to 100% gains.

Discover the names of these stocks in the next five minutes. To get your FREE copy of "Four Ways to Profit From Oil Bust 2008," go here now.

Oil Bust Opportunity #1:
Retailer Revival

As much as high oil prices mean that it costs more to fill your gas tank and heat your house, lower prices put more hole-burning cash in the pockets of consumers. Now, we're not suggesting that this could result in a spending spree of 1990s proportions, but it will be enough to lift the stocks of certain retail stores.

In addition to a steadier flow of cash from consumers, stores would no longer have to bear the burden of additional costs from transporting goods from abroad. It's a win-win situation. We don't think, however, that higher-end retailers stand to benefit nearly as much as the Wal-Marts of America.

While we believe oil prices will fall further and give the economy and retail sector a mini-boost, we still need to keep the wildcards in mind and put our money in safer but profitable positions.

When it comes to retailers, there's nothing better than owning a basket of these stocks, rather than just one or two in case a Target or Wal-Mart or Home Depot drop an earnings surprise on us. This one simple investment allows us to spread the risk among a large number of retailers.

This fund holds a multitude of retailers, many of which deliver the staples of life. At an average price-to-earnings ratio of 17.7 times historic earnings, it is hardly overpriced as are the goods sold by the companies held in it.

Even if one of our wildcards drives up the cost of oil again, consumers will flock to these stores for what they need before they even consider stepping foot in a mall for what they may want.

Get your FREE copy of "Four Ways to Profit From Oil Bust 2008."

Oil Bust Opportunity #2:
Flying the Profitable Skies

Airline stocks are set to take off as their costs are so closely tied to the price of jet fuel.

We've been following the fortunes of one major airline that has cornered the market on oil and has a unique margin-preserving handle on its fuel costs. This company's savvy strategy has protected its business, customers and shareholders.

Looking forward, this airline has as much as 85% of its 2008 fuel needs pegged at $49 per barrel in comparison to a cash price of $65 per barrel. Meanwhile, fuel requirements through 2009 are tied to $35 per barrel. That foresight gives them a running head start against other airline carriers.

Look for this one to deliver 50% or more in the next six months. Discover the name of this stock right now.

Oil Bust Opportunity #3:
Capitalizing on Rising Interest Rates

The unfounded fear that the economy is gutter-bound delivers our third oil bust investment opportunity.

If we're on target about the fact that this oil frenzy has run its course, falling prices could catapult the economy and even force the Fed to pull the trigger on interest rates, pushing bond prices lower and yields higher.

The benchmark government 10-year note currently yields just 4.42% while the overnight Fed funds rate stands at 5.25%. Although the investment world at large seems to expect a cut in rates, the Fed hasn't said "boo" about its probability.

Speculators and cash-rich oil producing governments have saturated the bond market, sending prices into orbit and yields into the toilet. Should the dominoes fall the way we suspect they will — lower oil prices will trigger consumer spending and an up tick in inflation, causing the Fed to revert to a rate-hiking strategy — we've got just the ticket for profiting from this potential bond bomb.

It's a Treasury index ETF that stands to fall sharply if rates rise, and we're recommending that FIR readers sell this fund short, then sit back and watch the profits roll in. I want you to be there with us too.

Oil Bust Opportunity #4:
A Triple-Tiered Shorting Strategy

If oil prices tumble so will shares of the drillers, explorers, well-site managers and distribution companies. And, there's no better fund to implement this strategy than the one that holds 20 of the largest stocks serving the oil industry.

The price of oil greatly affects the overall revenue generated by these companies. If our prediction proves correct, these same companies will experience severe sympathy pains and put smiles on the faces of FIR readers — and big profits in their pockets.

Discover this simple strategy in "Four Ways to Profit From Oil Bust 2008." You're your FREE copy of this new special report. Go here now.

Why Oil Prices are Destined to Fall and Your Profits to Rise

In "Four Ways to Profit From Oil Bust 2008," we also reveal how industry-wide manipulation has affected oil prices:

  • Who says oil is drying up? One monster has grown its reserves from 5.1 trillion barrel since the beginning of 2002 to 9.3 trillion barrels at the end of 2005. It has somehow managed to boost its reserves by some 82.5% in three years  while it's still pumping! Another biggie has grown reserves from 15.6 trillion barrels to 21.6 trillion barrels. In fact, the seven companies in the S&P 500 integrated oil and gas index have on average increased their reserves by 29% since 2002.
  • Research also tells us that this it the fifth time the world has "run out of oil." Dire warnings of impending shortages like those we've been inundated with were also issued just after World War I. And the "permanent oil shortage" of the 1970s gave way to the glut and price collapse of the 1980s and on and on.
  • There's no question demand for oil is exploding worldwide, but the largest factor of rising oil prices is actually a political ploy. Why is it that OPEC members stood up last year and waived their production quotas for the first time in at least two decades, then reinstated them when oil prices sank?

What's particularly scary is how investors can and have affected prices. As oil peaked in July, the crude oil futures market sucked in a whole new wave of buying from speculators. It won't be long before they realize that the best of the bull market is behind them, forcing a retreat from their long positions.

FIR readers, though, have abandoned their oil positions long ago and turned their collective attention to the four monster profit opportunities uncovered in "Four Ways to Profit From Oil Bust 2008."

Market-Beating Success Year After Year

Since launching FIR, we have had a remarkable record of success understanding trends and piggybacking our investment recommendations on them.

We had great success in 2004 across a diversified spectrum of investments, with an average 46% rise in our recommendations compared to the S&P 500's 15% climb. Then in 2005, the scorecard wound up 22% to 6% in FIR's favor.

In 2006, we saw the same successful pattern with our average recommendation gaining 27%, while the S&P to date is up around 14%.

Our success has nothing to do with luck or a "crystal ball." We just believe in understanding trends, and riding the right ones at the right time — avoiding the imposters along the way — and then acting on our intelligence to know when it's time to step aside.

But it's not that easy for the average investor to accomplish on his or her own. You need to have a source you can rely on.

Unlike most other financial newsletters, with Financial Intelligence Report, there is no hype. There are no absurd claims. It's just thoroughly researched, accurate information, reasonable projections and excellent investment advice from some of the best financial minds in the country.

In fact, Financial Intelligence Report is more like a white-paper report that major trust companies send to their billionaire clients.

Most investment newsletters providing this type of incisive coverage typically cost $200 to $800 a year. Some cost well over $1,000.

So how much does Financial Intelligence Report cost?

Typically, FIR costs just $199 for a one-year subscription. But today we have an even better offer for you!

No-Risk, Limited-Time Offer

For a limited time only you can sign up for a one-year trial subscription to FIR at the special introductory price of just $99 (12 monthly issues), save more than 50% off the regular price of $199 and get "Four Ways to Profit From Oil Bust 2008" absolutely FREE!

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