You're right. The last time we (the world) held OPEC hostage when no one was consuming oil (and it went to $12/barrel, and CAM was 20, and GLM was 7......).
Now, the tables have turned a little. Neither is right, but that's economics.
But it's not just oil. It's other commodities. Paper, copper, etc.
I really urge you to find the CRB index of commodity prices and look at how it's risen. It's not oil and NG. It's quite a few other raw materials that's hurting the inflation picture, too.
As well, companies have more pricing power these days then they did a year ago. They are getting their price increases, AND PASSING THEM ON. And....we are paying them.
Wages are rising, too.
So.....I have a feeling that while we think he's a heel now, history will show that he did the right thing. I am feeling quite a bit of pain with a high-tech weighted portfolio, but it just makes me look harder for companies like SDLI which today told Wall Street that their earnings estimates were too low.
SDLI was up almost 30 points. I am more worried about researching and finding the right companies and segments than a pre-emptive fight against inflation right now.
In the long run, I think the Fed will keep this expansion alive, and running at a more sustainable rate, without too much inflation.
The bull will be back sooner than you think. Just be ready and save your cash to invest it. You'll have some bargains that you won't believe in 2 years.
Steve |
