The Energy Strategist

As I remain bullish on oil’s long-term prospects, this week’s installment of Emerging Market Speculator features energy expert Elliott H. Gue’s take on key developments in the global oil market. Mr. Gue is the editor of The Energy Strategist and MLP Profits.

For now central banks will continue their accommodative monetary policies, as they know that the recovery is fragile and sentiment is not at its best. It would be be premature to shift your whole portfolio to defensive sectors, as these should underperform if markets close the year higher.

In the short term, the economic outlook is moving in the country’s favor; 2010 is forecast to be a solid year for Malaysia’s economy, with GDP growth returning to positive territory at around 5 to 6 percent.

Cyclical names should continue to do well, especially in Asia, but investors should consider some defensive plays--I favor consumer staples names with exposure to Asia.

The point to understand here is that the year-long rally in emerging markets isn’t based on the conviction that the global economy is completely out of the woods and that the Anglo-Saxon financial system has resolved all its problems.

Yiannis highlights his play on the Cambodian gaming industry and recaps the latest earnings releases from the Portfolio holdings.

If markets have no major hiccups for the rest of October and into early November, expect them to move higher through the first few months of 2010, with November, December and January being the “money months.”

Interactive Brokers currently allows only people of Indian origin to purchase stocks on National Stock Exchange.