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Strategies & Market Trends : Commodities - The Coming Bull Market

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To: Robert Douglas who wrote (1391)7/18/2002 8:50:12 PM
From: craig crawford  Read Replies (1) of 1643
 
>> How can we possibly have higher commodity prices with a sluggish economy? <<

1970's.

>> Also, have you ever seen a chart showing the core crude PPI to corporate earnings? Bruce Steinberg, chief economist at Merrill Lynch, publishes this regularly. It shows an extremely tight correlation. If we get a higher crude PPI, we will get higher S & P earnings. Stock prices are almost sure to follow. <<

i pointed out many months ago that the economy may bounce back from all the govt stimulus and deficit spending, but that did not necessarily have to translate into higher stock prices. multiples can come down. i think that has proven to be the case, and i don't see why it has to stop.
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