CEO, ABX,GLD: Despite soaring U.S. inflation, there are still opportunities for gains

Posted July 5, 2008

Indexes show a rising U.S. inflation rate and consumer sentiment is at its most pessimistic in over 25 years. But Bill Patalon of The Money Map Report has three stocks that will see you profitably through these tough times.

Join Laura’s interview with Bill Patalon…

by Laura Cadden

Baltimore — (TFN): Consumer sentiment has been the most pessimistic it’s been since early 1980, and rightly so.

Ever-increasing oil prices and weak dollar continue to bump up the cost of imports, domestic food supplies, and energy, and the U.S. consumer is feeling it in the form of the dreaded “I” word – inflation. But my guest today, Bill Patalon of The Money Map Report, has found ways to profit, even in these inflationary times. Bill, do you think oil prices will continue to rise?

Bill Patalon: I think in the near term, you could have a slight retrenchment, but definitely in the long term, they’ll go higher.

Laura Cadden: How high do you think they could go?

Bill Patalon: I think we could see oil prices of $225.00 a barrel and maybe gasoline prices in the $7.00 to $9.00 a gallon range.

Laura Cadden: You think by, like, next year, or –

Bill Patalon: Yeah. Yeah, absolutely.

View the video…

Laura Cadden: Is there a specific oil company that you like, that you’re following?

Bill Patalon: We really like Statoil, the Norwegian oil company. They’ve got some great properties. They’re a deep sea oil driller. They’ve got great partners, a global reach. It’s a company to watch.

Laura Cadden: What about China? I know they’re battling their own inflation figures right now. Do you think there’s still opportunity there?

Bill Patalon: Global trends all point to China being a major force economically for years to come, and I think that investors have to make that part of their portfolio. One play that addresses the energy aspect is one of their oil companies, CNOOC Limited. The symbol is CEO. It trades as an ADR. It’s an offshore oil driller. Again, it’s got a global reach. With the cheap dollar, they could be on the acquisition trail. It’s a little expensive right now, but I’d pick it up on a pullback.

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Laura Cadden: What are your feelings about gold right now?

Bill Patalon: Most people look at gold as a hedge against inflation. And that’s certainly a way to look at it. We look at it as a wealth play. As China, India, and other economies around the world, they watch their middle classes expand and they watch their incomes rise. They’re going to want the same kind of luxuries that the American consumers want. Gold is definitely one of those must-have items. I think the emergence of those economies is definitely going to drive the price of gold up higher

Laura Cadden: What do you think the best way is to play the metal?

Bill Patalon: Well, there’s the ETF, the streetTRACKS gold. The symbol is GLD. I also like Barrick Gold (ABX). It’s a Canadian company listed in the U.S. They’ve got a nicely-diversified portfolio, with properties around the world. They just boosted their guidance and their dividend as well.

Laura Cadden: Well, this is great information. Thanks so much for coming on the show. Follow this link to learn more about Bill’s investment information service, The Money Map Report.

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