RE:RE:I am in cash nowThere is zero chance we see a hike on interest rates in the next few months as you say. The Fed is still buying $120B per month in bonds and MBS. I don't see them tapering at the same time the economy is cooling off and inflation fear are dissipating. If they are to do someting, they will start tapering very slowly. The whole process will take many months.
Disposable incomes remains elevated and there is still lots of pent up demand for trips and such. Plus people are avoiding public transportation and will continue to do so.
The Fed cannot let interest rates to rise given the huge debts in the system. They will continue monetizing the US deficits, run inflation higher in order to inflate the GDB. All central banks in mature economies will do the same playbook.
riski wrote: That's fair. No one ever went poor locking in profits.
I still like O&G from here over the next two years, though I wouldn't touch ATH at this point as I think we the industry is going to face signficant headwinds in the coming weeks/months with limited catalysts. We are at the end of the driving season with demand tapering, OPEC supply rising as scheduled each month into 2022, interest rates going up in the next few months, and the increasing probability of a general market correction which will take oil with it.
It's best to stick to high quality names at this point. ATH has had a great run. Just about everyone should be sitting on profits except for those who jumped in late.
Nothingmatters wrote: Waited waited. I am in total cash now. Cant stomach the volatility. I am still a lot up so took my gains and running. Lumber prices went down by 70% from recent highs so who knows. Locked in profits. Waiting in the sidelines now.