Israel and Syria have been talking quietly about a peace treaty for several months. Syria needs huge investment to rebuild their country, and the Israelis can't afford it. Nor, in the midst of this recession, can the U.S.

With oil prices bringing them about a billion dollars a day, Saudi Arabia can, however, they want two things in return: somewhat lower and calmer oil prices so that the world will slow down on finding alternatives to oil, as well as peace in the Middle East so that the ruling family can stay in power.

The Saudis have agreed to fund the peace agreement by sending money to Syria if they agree to play nice. We're talking lots of money.

The U.S. and Iran

At the same time the Israelis and Syrians bury the hatchet, we are about to get a much more private meeting of the minds between the U.S. and Iran. Recently, the Bush administration sent the third-ranking State Department official to Paris to participate in international talks with Iran in an attempt to resolve the impasse over Iran's nuclear program.

With the U.S. present, these talks take on new importance as an opportunity to get issues resolved. Iran has been taking the position that there can't be any agreement without U.S. involvement, and our State Department said that joining these talks sends "a strong signal to the Iranian government that the United States is committed to diplomacy."

Through these talks, we now know that Iran has no intention of building nuclear weapons in the immediate future, and with Saudi Arabia's behind-the-scenes offer of huge financial incentives, some simple inspection agreements will let the U.S. and Iran stand down.

Profit From Plunging Oil Prices

I expect peace in Syria and Iran to knock oil prices down $40 to $50, maybe even $60, from the highs. We've just had the biggest two-day drop in crude oil prices since January 2007, cracking major support at $136. Why? Because the rumors about these two major peace events is starting to leak out.

The drop could happen quickly–too quickly for the $4 trillion in excess cash in money market funds, mutual funds and brokerage accounts to get invested gracefully.

While oil speculators get their just deserts (see also, "Musings from a Stock Market Spectulator") you get to collect BIG TIME as most stocks rally like a shot.

Here's How You Can Profit

Falling oil prices will drag gold, silver and commodity prices down with it, and probably put a lid on energy and alternative energy stocks for several months. The financial stocks may also be mediocre performers, just because the bad news will not let up until near the end of 2009. At the very least, the negative news flow will keep those stocks volatile and under pressure.

So–SELL mining, basic materials, commodity, financials, and energy stocks. Be sure to hold selected alternative energy stocks that have business plans to make money even if oil falls to $80 (see also, "Water: The Next Oil"). That's what my New World Investor subscribers are currently doing, and it's definitely about to pay off.

For key information on what to BUY join the ranks of my New World Investor subscribers today. They're already beginning to benefit big-time from this wide-spreading peace and lower oil prices. Find out what you can do to join them before it's too late. I expect the news of peace to break any day, and with it, certain sectors of the market will soar. Why miss out? Join New World Investor today and find out exactly where to invest in order to profit!