US Oil Bill Hits All Time High. Is This Just the Tip of the Iceberg?
Driving a 9.3% spike in the US trade deficit during November was a 16.3% increase in its foreign oil bill (US Commerce Department). This incline brings our tab to an all-time high of $34.4 billion. A number which should likely grow over the coming months as oil prices flirt with $100 on a per barrel basis.
On another bleak note, US consumer confidence hit all time low levels, as it is measured by the RBC Cash Index.
With the White House kicking around the idea of tax cuts, analysts believe that US consumers are indeed quite weary of what the near-term holds.
"People are anxious because everything sounds pretty awful these days," said Bill Cheney, chief economist at John Hancock Financial Services Group in a recent article issued by the associated press.
You Gotta Be In It To Win It!
While many investors have their hands on the panic button, ready to push it, now is definitely not the time to go hiding under a rock due to the uncertain economical climate we are currently being exposed to. In my opinion, now is the time to dig your heels in and put your money into both defensive investments and those that you feel may be least effected by a recession or at least a struggling economy.
From our small-cap portfolio, Marmion Industries Corp (OTCBB: MMIO), Nighthawk Systems Inc. (OTCBB: NIHK), and a newcomer, Legacy Systems Holding Inc. are all somewhat resistant to economic downturn because they serve markets that will thrive with or without a very stable economy.
NIHK's remote disconnect device business in gaining steam in the utility sector as energy providers look to cut costs and become more efficient.
MMIO, builds and installs HVAC systems for the petrochem industry as well as schools, municipalities, etc. Number one, growth in the petrochem space will continue. Number two, both the industrial and commercial segments must install new age ventilation systems that help conserve energy.
Legacy has developed a potentially breakthrough "green" clean wafer technology that is already gaining widespread recognition in the semiconductor industry.
Just a few ideas for the next few months folks. We'll be interviewing executives from these organizations as well, so please send over any suggested questions that you'd like to have answered and we'll do our best to hook you up.
Have a great weekend!!!
Labels: Legacy Systems Holding, Marmion Industries, Marmion Industries Corp., MMIO, Nighthawk, Nighthawk Systems, NIHK, OTCBB: NIHK, RBC Cash Index, US Consumer Confidence, US Trade Deficit
posted by "Staff" at
9:28 AM
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