With several major developments occurring around the world, many investors may wonder how they could affect their portfolios or their lives. Here are two of the current, newsworthy events and how investors may interpret them.

Libya

The oil from Libya totaled about 2 million barrels a day before the revolution, half of which was exported. About 1 million barrels a day are no longer available to the world. That isn't enough to really affect the price of oil for a long period of time. Plenty of other countries can supply that amount without straining their capacity. But they're unlikely to step in to fill the gap when oil prices are above $100 a barrel. That price should recede once the conflict finishes and a more stable government is in place.

ConocoPhillips (COP) is likely to gain in the short-term from political tensions in Libya and other Middle Eastern regions due to a rise in crude oil prices globally. However the recent news in Japan following fears of a nuclear crisis gives us some concern. ConocoPhillips and competitors like Exxon Mobil Corporation (XOM), BP (BP) and Anadarko Petroleum Corporation (APC) and Chevron Corporation (CVX) are sensitive to changes in oil prices.

While we expect ConocoPhillips's price of crude oil and LNGs (per barrel) will increase to around $83 by the end of the Trefis forecast period, Trefis members forecast the price rising to $102, implying an upside of 5% to our price estimate for COP stock.

The Japanese devastation is almost incomprehensible. First there was the earthquake, followed by the tsunami, followed by radiation. It seems the disaster has no end. The people are suffering beyond imagination. It will be a long time for the country to heal. In the north, it will take decades.

Investors are trying to understand what the economic aftershocks will be. Which industries will be hurt and which ones will benefit? Because the crises change from day to day, it's extremely difficult to ascertain. But there are a few themes that seem to be emerging. Some of these will be short lived, such as the closing of the Japanese auto manufacturers. While they will lose days of production, the long-term effect will be minor, unless supplies are interrupted, causing further delays.

Watch the tape. Ignore the chatter. Those two are old truisms. The U.S. treasury market held firm Monday, with the 10-year June futures contract closing at 120-06, up 16 ticks.

There was some chatter from naysayers that China or Japan, the biggest foreign holders of U.S. debt, might decide to sell. That piece of news can be discarded. Why would they sell and take huge losses?

Stocks markets, however, across the globe were down, prompting a scramble for safety. Which safety? Why, the U.S. treasury market.

The crisis in Japan will require all sorts of construction materials for rebuilding destroyed buildings and factories. Steel is used in most construction projects. Here in the United States, U.S. Steel (X) is a dominant player.

Let's look at the company profile and earnings reports. "Based in Pittsburgh, the company operates mills throughout the Midwest, in Ontario, Canada, Serbia and Slovakia. The company makes semi finished steel, tubular and plate steel and tin products. Its annual production capacity is about 32 million tons of raw steel. The company's customers are from autos, chemical and steel service center industries."

MetLife (MET - option chain) stock is trading lower today along with most other insurance companies this morning after the cost to insurers related to Friday's earthquake in Japan was estimated to be between $15 to $35 billion. Prudential Financial (PRU) and AIG (AIG) are also down so far in today's trading. Even if these insurance companies are actually on solid footing financially with regard to their expected claims, I expect investors could be frightened for several months to come, which could keep share prices depressed. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MET.

• BHP Billiton (BHP), the world's number one miner, had earnings before interest and taxes of $14.82 billion. Of that amount, iron ore accounted for $5.8 billion, up 177%
• Number three miner, Rio Tinto (RTPPF), had earnings of $26.6 billion. Iron ore unit accounted for 60%, or $16.6 billion, up 133% for the year.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Bloomberg recently reported that China has recorded two straight months of reducing its holdings of Japanese debt; t.his suggests that the Japanese yen has reached the point where it's become too 'strong' for its own good -- or at least for China's taste," says global stock specialist Keith Fitz-Gerald.

The editor of The New China Trader explains, "Considering China has become the world's de facto financier, we'd be wise to pay attention.

Precious metals moved higher today, led by gold, which set another record high. Here are the numbers:

• December gold futures are trading at $1,328.20, per ounce, up $11.40 (as of 8:00 am EDT)
• December silver is up 23 cents to $22.27 per ounce.
• October platinum is trading at $1,681.7 per ounce, up $14.
• December Palladium is up $7.20 to $568.50 per ounce.

Japan's new prime minister, Naoto Kan, in his first major speech since taking office, said: "Japan is 'at risk of collapse' under its huge debt mountain."

For the past 20 years, Japan has been borrowing to keep its economy afloat. Most of Japan's bonds have been bought by Japanese citizens. Now with an aging population, Japanese citizens may not have the desire to purchase more bonds. The government would be forced to find other buyers who, most likely, would demand a higher yield.

Last week's ratification of the Durbin Amendment by U.S. lawmakers seemed to put Visa (V) on edge, with the credit card company now facing the prospect of curtailed interchange fees. (Of course, the firm's written statement cited concerns about potential harm to consumers -- a nice touch.)

So, with the forecast looking gloomy on the home front, perhaps it's no surprise that Visa is now trying to woo another major world power. According to Japan's The Nikkei, Visa "will urge the Japanese government to use credit cards for all of its purchases, from stationery items to parts for fighter jets, saying it would save the country a lot of money."