Oil the investment of choice for 2016: Beeton
Investors are being urged to take advantage of the low price of oil, with Tailored Investment Solutions founder, Justin Beeton, forecasting the commodity will double in value by 2018.
Launching the Tailored Investment Solutions Crude Oil Units, Beeton said oil was the investment option of the year.
Having predicted the bottom of the US share market with Berkshire Hathaway-linked investment in 2010, which gave average returns of 99 per cent, Beeton said the conditions are similar for oil now.
"In Buffet's words, ‘the time to buy is when there is blood on the streets'," he said.
"We look for quality assets or sectors which have been oversold due to short-term influences rather than long-term fundamentals.
"This was the situation for Berkshire Hathaway in 2010, and is the same for oil right now.
"Within the next two years I expect oil to be trading above $60; double where it is today."
Beeton has partnered with Quantum Fund co-founder, Jim Rogers, who he described as the "best in the world" when it came to commodities, who backed Beeton's assessment of oil valuations.
"Oil is in the process of making a complicated bottom," Rogers said.
"Declining [and rising] markets take on a life of their own and a momentum of their own, so the bottoms [and tops] are usually exaggerated. Commodities have rarely been down so long."
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