While we think crude oil will go much higher 3-5 years down the road, don't be surprised if it drops $6 from current levels in the near-term:
Monday, October 12, 2009
PRICED TO PERFECTION
Equities and many commodities are priced for an Economic Nirvana. Ask yourself this question: you know at least three people out of work... how's their job search going? That said, our view generally is equities are moving up on cheap money and Big Funds who missed the bottom, trying to drive the tape to year-end (making up for last year's lost bonus). Commodities are following suite, driven by a deeply perforated US Dollar and unrealistic V-shape recovery. Net, Net: there is little chance Markets can exceed current expectations needed to drive this tape higher across the Boards.
While we think crude oil will go much higher 3-5 years down the road, don't be surprised if it drops $6 from current levels in the near-term:
While we think crude oil will go much higher 3-5 years down the road, don't be surprised if it drops $6 from current levels in the near-term:
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