Oil and gold: Damaskos' forecasts for 2012

OIL

It is always interesting to see how the stock market discounts events well before they happen.

Last year, smaller capitalisation stocks, especially in the more volatile segments of the market such as energy and commodities, were sold-off regardless of fundamentals. Valuations became so cheap that it was more attractive for larger, cash-rich industry players to buy companies rather than develop projects organically. As the New Year began, despite worries about a sovereign default by Greece and a potential crisis in the eurozone, markets started a strong recovery, led by the worst performing sectors of last year. By March, it became clear the Greek debt problems were being resolv...