RE:RE:RE:RE:RE:Bloomberg's report on Iran's plan to attack Israel: Is oil today cheap or expensive relative to the price in some bygone era? I dunno but the current price reflects the supply and demand situation now with exception of short term price inefficiencies and as an investor that is what is important in making decisions not the result using an inflation calculator.
Experienced wrote: Picking a year and using an inflation calculator to say the current price of something is cheap or not is a silly argument.
To prove the point, oil was $1.88 a barrel in 1926. The inflation adjusted price today is less than half the current oil price. So using that measure oil is very expensive today. Conversely an iPad today costs less than the price when Apple introduced it in late 2010. What does all this really say? Using such measures is useless. Using an inflation calculator ignores basic economics and associated technology.
Is oil today cheap or expensive relative to the price in some bygone era? I dunno but the current price reflects the supply and demand situation now with exception of short term price inefficiencies and as an investor that is what is important in making decisions not the result using an inflation calculator.
of course you don't know, you haven't shown us any analytical skils which i have label you time and time again, a poser. You afraid to make longer term prediction, becuase you lack across the board knowledge, hence why you gravitated to low risk preferred shares and very conservative investment style. Even SU is too risky for you.
by ridiculing my use of inflation calculator, it shows again how incompetent
analyst you are. Criticising my use of inflation calculator by showing us a 98 year example proved how inept you are while you said "
Using an inflation calculator ignores basic economics and associated technology." contradicted yourself because you are using this in attempt to prove your case. We are now more reliance on oil/gas than back in 1926. My inflation extrapolation of 20 years however is not out of the realm usefulness of inflation calculator. Cars, furnace, fuel usage hasn't change much since 2004. Hence i have use the inflator calculator appropriately while your 98 year extrapolation was used inappropriately. If inflation index is useless, why do economists and bankers even keep track of them?
Oil is an commodity, similar to copper, nickel, gold, silver, tin, zinc, wheat, cocoa, etc The laters commodities have all gone up in prices due to inflation but not oil/gas and yet all those other commodities required oil/gas for extraction, processing and transport. So i have a case to say oil/gas is still cheap relative to other commodities and basic inflation.
IPAD is not a commodity, it is man made widget which can be replicated in masses and which often deterioate in function into useless junk, just like the EV you plan to purchase and all the iphone 6,7,8,X,11 i got for free. Using hedonic adjustment, every current electronics gadget cost less today than yesterday. Using this to compare to oil inflation argument makes you a clown.
Just keep talking, as you don't offer any value to this board, except for me to make make fun of you poser.