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A Bailout, a Blackout, and a Bull market

The Latest Greek Tragedy Unfolds

Written by Keith Kohl
Posted February 13, 2010

Welcome to Energy and Capital's Weekend Edition — our insights in investing, as well as the top stories this week from Energy and Capital and our sister publications.


Let the roller coaster ride continue.

If you've been watching the latest Greek tragedy unfold this week, count yourself one among many if you end up throwing your hands in the air. It's not easy keeping up with the day-to-day chapters of this saga...

Call it a bailout, a rescue — whatever your heart's desire. The fact remains that Greece will get the help it needs. The country managed to post a budget deficit of 12.7% of its GDP in 2009.

In case you're keeping track, that's four times the EU's 3% limit. However, don't think Greece is alone in its economic woes. This looks more like a Band-Aid for Europe's larger troubles...

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The news helped give the dollar a three-day run against the euro as concerns grew over a European economic recovery.

Although oil prices were making steady gains throughout the week — reaching as high as $75.69 per barrel on Thursday — things just couldn't hold. As you know, a stronger dollar will keep commodities at bay. Now toss a larger-than-expected increase in U.S. inventories into the mix... and you'll end up with Friday's 2% decline in oil prices.

Greece wasn't the only country having a bad week.

Venezuelan President Hugo Chavez was forced to declare a national emergency in wake of the country's worst drought in 50 years. The drought effectively cut water supplies to hydroelectric dams. The latest crisis has put Venezuela's power grid on the verge of collapse.

Fortunately, not all news has been bad news. 

Natural gas futures rose on Friday after the EIA reported a drop of 191 billion cubic feet in its weekly report. Thanks in part to two monster snowstorms (both of which I've had the pleasure of witnessing) that ripped through the eastern U.S. Also, the EIA released its latest Short-Term Energy Outlook this week, pointing toward a gradual improvement in the natural gas markets during 2010. For investors, the real question is how soon industrial demand will recover. As soon as that demand picks up, we'll be off to the races once again. 

Here are a few other developing stories that have been stealing the spotlight this week, courtesy of Energy and Capital and our sister publications:

  • Chinese Cleantech Companies: Made in the USA (by China)
    Energy and Capital's Nick Hodge tells readers about the one sector where China is spending nearly $12 million per hour.

  • The Death of Death: One Biotech Boosting Your Immune System
    Energy and Capital readers know a thing or two about the biotech sector. In this special report, they learn about one grossly overlooked American biotech that can boost your immune system — and your portfolio — 1,000 times over.

  • The Horn River Basin & Montney Shale Formations: 3 Natural Gas Stocks to Own in 2010 
    Editor Keith Kohl looks at two Canadian natural gas plays that most investors have never even heard of — at least, not yet. Once the markets recover, these two shale plays will explode into the media spotlight.

  • The Bakken Oil Formation: How One Mistake Just Made You a Small Fortune 
    It's hard to grasp the concept of how one tiny mistake could turn into big gains for Energy and Capital readers. You see, it turns out that everyone underestimated the size of the Bakken oil formation — including us. That's why we're positioning ourselves for the second round of Bakken profits. In this free bonus report, find out how you can enjoy the same success as your fellow readers.

  • Maryland Offshore Wind Power: New Study Says 12,000 Turbines Could Go Offshore
    Energy and Capital Editor Sam Hopkins reports on the latest news over Maryland's clean energy capacity. According to his research, 20% of the state's electricity will come from renewable sources within the next decade. Sam targets one opportunity that Marylanders are focusing on right now.

  • Investing in Land Stocks: 6 Land Stocks to Safe-Guard your Portfolio
    Wealth Daily Editor Luke Burgess offers readers six stocks that could prove to be more valuable than both oil and gold. These investments are taking advantage of a much hotter asset: land.

  • DNA Vaccine Investments: This Bull Market is Just Heating Up
    Wealth Daily's Steve Christ talks about the upcoming bull market in DNA vaccines, showing readers how they can profit from the latest trend in biotechnology companies.

Enjoy your weekend,

keith kohl

Keith Kohl

Energy and Capital

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