RE:Madness Has Set InDo you own any oil stocks? What we're seeing is the price of oil finally marching higher by fundamentals and inflation. I find it odd how analysts can justify Amazon, Apple, Microsoft, Tesla, Shopify, etc at $1k+ per share, yet underlying commodities are expected to sell for bargain basement prices.
The die has been cast. The globalists want to slow growth. What better way to do that than by raising the price of commodities to astronomical heights. This will put pressure on other segments and is attracting investment money away from the high flyers of the last 6 years. The reality is we don't need crazy growth for E&Ps to do well. The world will chug along regardless, 'maybe' at a slower clip. If oil goes higher, hovers here or dips is irrelevant. The fact is the days of $60 oil are over; just as $10, $20, $30, etc oil ended a long time ago. Inflation is the order of the day and required to escape the mess global finances are in.
As for Europe being impacted more than North America, maybe... but I suspect that because of the Ukraine dust up, we see militaries around the world burning more fuel as they go on higher alert because of global unrest. I predict we see more large scale land, air and naval exercises by NATO, China, North Korea and others as all jockey for position and rattle their sabers. This will all take fuel and just like Kuwait and Iraq it will all be funded by average joe at the pump simply trying to put food on the table and a roof over his head.
If you don't own oil companies to hedge against what's happening it's still not too late. The run has really just begun with most Canadian E&Ps still trading below 2014 valuations.
JMHO. Good luck to all.
Rocket101 wrote: Demand / Supply senecio set aside it looks like the storm clouds have now arrived in a big way. As mentioned extreme oil prices are not good for the macro economic fundamentals. If people think this will end good think again. Watch out what your wishing for (200 oil lol ) I prefer to see stable pricing not irrational madness in commodities and the risks here to buy in now to me look very merky at best. The chances of one investing in a market where your seeing parabolic price spikes will most likely get it wrong. Why? Because it's not normal what your seeing in the commodities market. You can hold all the unicorn paper you wish but when you have no bread on the shelves I guess you can feed yourself 1000.00 bills lol. Everything is going stupid and as they always say the greater the moves up will be followed by just as bad for moves down. Stay Tuned
Jmho