Mexico and Oil–A Double Whammy for U.S. Economy?

With the sub-prime mortgage mess grabbing all the headlines, it is easy to take your eye off the ball and miss some other important investment themes lurking underneath the surface.

One of these themes could provide investors with a great opportunity while at the same time, add to U.S. economic woes for 2008. The theme is Mexico and, specifically, Mexican crude oil production.


Even though oil prices have had a great upside run since 2002, the consensus, while bullish, has continually underestimated the long term price of oil. Most focus their bullishness on the demand side of the equation while I tend to be bullish because of the supply side.

I think oil prices will continue to stay high because we have peaked out in terms of production. Let