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Strategies & Market Trends : John Pitera's Market Laboratory

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To: John Pitera who wrote (3833)5/1/2001 11:34:01 PM
From: Original Mad Dog  Read Replies (1) of 33421
 
John,

It seems to me that most of our expansions have coincided with periods of falling or stable energy prices, and many of our nastier recessions have occurred during periods of increasing energy prices. With oil, gasoline, natural gas, and electricity markets in various states of turmoil and price increases, that is the equivalent of a huge consumption tax. It would appear difficult for any significant expansion to occur (and consequently any sustained runup in equity prices) against this backdrop.

Regards,

OMD
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