Monday, January 25, 2016


It didn't take long for the market to start it's downward slide again.  Had a good day last Friday and it's back down on Monday due to the price of oil dropping once again.  While this all sounds like bad news, I'm thinking there are some hidden opportunities here.  Mainstream media are hyping low oil prices and Iran's oil coming back on the market but it's not painting a clear picture of what's really going on.  Supply is up, demand is down but what you rarely hear mentioned is that production is rapidly decreasing.  I've talked before about the correlation between low gasoline prices and presidential elections, which you don't have to take my word for, you can look it up yourself.  The price of gasoline almost always drops during during presidential elections.  But this time around we also have Iran moving back into the oil market when prices are already low.  I'm thinking it's creating a "perfect storm" for profits.  By the time the elections are over, I believe that demand will have caught up with supply and we'll see a rapid rise in the price of oil.  Which means anyone buying in at the current low prices should see some substantial gains by next year.  I've already made my oil play by buying shares in an oil royalty trust.  Whether I picked the right one or not remains to be seen, but it represents only a small part of my overall portfolio, so it shouldn't do much damage if it doesn't work out.

February income is likely to be lower than January, with only 14 dividend payments for the month.  However, I should more than make up for it in March with a whopping 22 dividends!  Despite stock market turmoil, I remain excited about my investments and the ever increasing income from dividends.  

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