The Secret to making money on the Stock Market|

What a difference a week makes!

BHP best "price" in almost 10 years!

I remember an old bloke telling me about the stockmarket 20 years ago, probably nearly 30 years ago if im honest, I remember him saying with great conviction.

"The secret to the Aussie stock market was buy BHP and put them in the drawer and forget about anything else".

 On an 8 year view you've had a hard time,

But todays the day if you take a 20 year view.

In fact any of the big plays in materials or oil have to be a good long term bet.

Woodside produces oil for about $20 a barrel, so they say, a lot of others will be gone before we get down there.

Both WPL and BHP reasonable dividend plays, so you would expect the SMSF herd to start buying them.

Both are a buy here on that basis.

But then again in 20 years time maybe we will all be carted around in self driving cars, running on solar power, with no need for oil?

But I think more likely we will still be using oil, and if it stays under $60 dollars a barrel, which now looks likely for sometime, demand will grow, at under $40 a barrel we could see some real growth, heaven forbid!

Realistically the Heavy Transport Industry has no other option than to use oil, I can't see solar panels powering 60 tonne B doubles up and down the Hume highway.

Potentially cheap oil could power a great new era in growth, with the new silk road likely to benefit greatly.

A good read on energy from a couple of years back is

Comeback Charles R Morris.

on the Shale gas boom in US.

Morris outlines the huge potential cheap energy could once again have shaping Americas future.

Interesting because the huge growth might mean significant exports.

And to put on a global scale, cheap oil could see a new global boom, in Trade.

So what are we all so worried about?

 

A bit Thunderstuck