Oil prices

High oil prices is needed to fasten the pace of research in alternative energies. We are at the peak of the oil era and new oil discoveries will not slack the rise in oil prices. Oil prices will not return back to its cheap days anymore. OPEC are the ultimate winners in monetary terms but they lack technological advancement.

Instead of building the hospitality and commercial industry, their massive oil money could be used in the research of alternative energies. It will be expensive in the short run, but if they succeed, they would continue their "tradition" of being energy behemoths.

Meanwhile, in Singapore, what is the future after creating commercial and hospitality industry? The hospitality industry is a "perfect competition" because every country can create it and are doing it now. However, rising inflation will stop globalisation in its track, at least slowing it down.

With this, subjectively, the stock bull market is over until new energy sources are created. I am not surprised if a Octane 98 reaches S$2.5 within a year.

It's a huge risk to invest in alternative energy stocks but it can be the most rewarding with a 10 - 20 years outlook.

All of us must follow the 3 rules to Reduce, Reuse and Recycle in order for everyone to survive. Once total oil supply in the world reaches a negative threshold, it will be too late. If fact, we have just passed the oil peak and we are experiencing the initial effects of depleting oil.

However, oil prices will dip in the short term (a correction) and will assume its uptrend later for the medium and long term. The dip will be a great opportunity to accumulate oil stocks in the medium term. And now, before that huge dip occurs, transportation stocks are a bargain.