Goldman Sachs at $185, or oil at $145?
Which investment do you prefer–a barrel of oil or a share of Goldman Sachs?
On May 28, 2008, an analyst at UBS Securities rated the shares of Goldman Sachs neutral or unchanged, with a price target of $185. That’s higher than what Goldman’s famed oil analyst Arjun Murti thinks will be the average price of oil this summer–$145 a barrel.
Now, if you are an investor with a longer-term horizon, you could short Goldman and buy oil, if Murti’s forecast of up to $200 oil ends up coming true.
Buy the hard asset (a barrel) or buy the paper (a share).
–Leslie Haines, at lhaines@hartenergy.com
Oil and Gas Investor magazine, Houston
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