Follow The Oil Money
Every time you fill up your sedan or SUV you can’t help but remember oil is trading near $100 a barrel.
Of course, that money flows back to the Middle East, but where do the petrodollars go from there? Apparently, right back into American business!
For example, in August Dubai took a 10% stake in the second largest casino operator in the world: Las Vegas based MGM Mirage (MGM).
In September, Dubai bought a fifth of the NASDAQ (NDAQ) stock market, the trading home of Google.
And on Monday night, oil money made a move on the financials. The government of Abu Dhabi bought a 5% stake in beleaguered bank Citigroup. (If you read us regularly, you remember that earlier this month we told you that might happen.)
From the Middle East to Russia to China, oil money is expected to expand by a trillion dollars each year to nearly $8 trillion in 2011, according to Merrill Lynch.
How can you follow the oil money?
Tim Seymour, aka The Ambassador joined the panel for this conversation. Following are excerpts from what was said.
The market is closely watching what sovereign wealth funds will do, Tim Seymour said. And there’s no question that they’re looking at strategic national interests. We’re talking about banks. Specifically, Middle Eastern banks want to legitimize their banking industries.
If oil continues lower, will the Middle East slow down buying, asked Pete Najarian.
I don’t think so. Seymour replied. This is a trend that won’t change, no matter what happens with oil.
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Trader disclosure: On Nov. 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (YHOO), (EMC), (INTC); Najarian Owns (AMZN) Options, (EMC) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (NYX), (TSO), (YHOO), (WMT), (AEO); Finerman's Firm Owns (MSFT) Options, (NMX) Options, (BIIB) Options; Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (SPY), (IYR), (IJR), (MDY),(IWM), (LEN); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; NBC Universal Is The Parent Company of CNBC
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