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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Wyätt Gwyön who wrote (63158)6/8/2006 7:23:56 PM
From: UncleBigs  Read Replies (1) of 110194
 
low energy spx weighting has as much to do with overvalued tech and financials.

low mpg vehicles, reduced driving, a nasty global recession, a mild hurricane season, an iranian settlement can devastate the energy bulls. oil is a commodity where price is extremely sensitive to incremental supply/demand.

I'm a long term energy bull but the downside over the shorter term can be severe. it's best to have plenty of dry powder for a big pullback.
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