The world watches and waits for President Mubarak’s speech in Egypt, in which he is expected to resign. Is this the second domino after Tunisia?
There will be resistance to all this change, especially by our dear friends the Saudis. They recently suggested that Obama should butt out of the politics of Egypt.
Regardless of their opinion, this moment will be etched into the minds of citizens of repressive regimes in the Middle East and of those that govern with an iron fist.
Earlier this month, I was hesitant to speculate on the effects Egypt would have on energy investments due to changes in levers like Oil and BDI Shipping rates. However, after today’s announcement, I’m thinking people all over the middle east follow suit. HiddenLevers scenario analysis shows a couple different energy plays that should make good hedging strategies if we do see a Revolution in the Arab Street. Continental Resources (CLR) and First Solar (FSLR) have been alpha plays to Oil prices over the last 6 months. So if you are long oil on the heels of this speech, try those.