The Good,,,The Bad,,, and The Ugly.
(Lee Van Clef has nothing on Gustav)
The Good:
Gustav weakens as it approaches the Gulf Coast to a Cat1 on Monday.
Oil Rigs and Refinaries dodge a bullet and have no disruption in capabilities.
On Tuesday, Oil Prices take a nose dive based on lowering demand and the
Markets rally on a short term basis.
The Bad:
Gustav drives into the Gulf Coast as a Cat2 on Monday. News is slow to
come out concerning the extent of damage (if any) the rigs and refinaries
suffer. On Tuesday, Oil Prices move upward on limited news. The Market
takes another hit on a short term basis.
The Ugly:
Gustav intensifies to a Cat3+ as it slams into the Coastline on Monday.
The limited news from inland is tragic and extensive. Several days will
go by before damages can be accessed. The Market responds in
a spiral downward for a couple of days only to find out that several
rigs and refinaries failed to keep Mother Nature at bay. Disruption to
supply result in new highs (Price of oil) and the Market looks forward
to retesting July Lows.
THE (I) FUND IS NOT GOING TO BE AFFECTED AS BAD AS THE (C)
AND THE (S) IF THE NEWS IS BAD OR UGLY. SHOULD THE NEWS
END UP BEING GOOD, THE (I) FUND WILL NOT SEE THE BENEFIT
EXPECTED BY THE US MARKETS. IF I WAS TO SPECULATE, I'M
LOOKING FORWARD TO SEEING "GOOD NEWS" COMING OUT OF
THE GULF. I BELIEVE THE FOLKS IN LOUISANNA WILL FIND THE
ROOM TO COMPLAIN ABOUT THE MANDATORY EVACUATION CALL.
AND THE TSP WILL SEE BETTER RETURNS FOR THE SHORT TERM.