I wanted to give you an update tonight (10:20 cst) since we may lose power due to Hurricane Katrina. In overnight trading oil prices spiked up $4.67/bbl, and gasoline prices rose .30 cents.
I'm sure you have been glued to the TV coverage on Hurricane Katrina. A catagory 5 storm hitting Mississippi,Louisiana, and particularly New Orleans will potentially have very serious consequences on our economy. If oil prices and refining take a serious hit, we could see $3.50-$4.00 a gallon gasoline prices.
We are positioned fairly well with our market hedge, the Rydex Tempest 500 Fund (RYTPX), as well as our positions in select oil stocks. That being said, I hate that anyone would have to go through what the people along the Gulf Coast will incur over the next 24-48 hours.
Our sincere prayers are with the thousands of families who live in the path of Katrina. I hope you will also include your prayers along with ours.
I may or may not be able to post a comment for a few days. I am located in Pensacola, FL, and we have also had a terrible time with Hurricanes over the last few years. Hurricane Ivan almost torn our city apart last year, I cannot imagine (and do not want to) how devistating a catagory 5 can be. Lets all pray for a significant downgrade of this storm.
