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 Oil's Wakeup CallThe rise in oil prices and a clearer understanding of the increasing demand and the limited supply has convinced many powerful and respected investors to jump in. One example is Martin T. Sosnoff - chairman and founder of Atalanta/Sosnoff Capital, a private-investment management company with over $8 billion in assets under management. In an article at the Forbes.com website, he urges investors to get into the energy field, and talks about how he is now moving investments into the energy sector. "Oil at $100 a barrel is a wakeup call for investors and politicians alike. You can't blame ExxonMobil for making $11 billion quarterly. Prices are set by the futures market, not in boardrooms or coffee houses in Riyadh." "Normally, I avoid commodity plays, but I've joined the crowd. The weighting of energy and commodities in the S&P 500 Index approximates 16% of its valuation and over 20% of earnings. Technology's weighting is the equivalent of energy and commodities, so if you're overweighted in tech and underweighted in holes in the ground, you could suffer sizable underperformance. The value sector this year has pulled ahead of Russell's Growth Index, reversing last year's wide disparity." "Suddenly, I've got religion, rapidly building up my participation in energy and commodity plays. The demand side for oil is compelling when you look at incremental increases for China, India and other emerging economies. Demand could grow by 1.5 million barrels a day for the next 10 years. Considering the decline rate in existing oil fields, the world needs some 37 million barrels of new capacity to keep pace. This is a big number. To the extent it's unfulfilled, oil prices will rise..."
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