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To: montanajoe

You need to look beyond the cost of a barrel of crude having only one indicator. It is far more complicated than that (supply/demand, which countries are stockpiling, who is hoarding hoping to unload it if it goes up because they know of some governmental activity that will cause a shortage). It is also directly tied to the dollar. So if the dollar is in the tank, crude goes up, and vice-versa. If you google for a graph overlaying the value of the dollar vs. the cost of a barrel for the past 20 years, you will see an almost perfect mirror image as the rise in one results in a decline in the other.

If you want a better vanguard, keep an eye on the Baltic Dry Shipment Index. It is in the tank, because no one plans on shipping anything, because no one plans on selling anything.


18 posted on 01/30/2013 6:26:56 PM PST by Ghost of Philip Marlowe (Prepare for survival.)
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To: Ghost of Philip Marlowe

I agree that just looking at one indicator is foolhardy. But making investment decisions based on ones political beliefs is equally foolhardy. I actually take lots of factors into consideration and I’m betting on slow choppy growth in the next 2-3 years..


19 posted on 01/30/2013 6:33:40 PM PST by montanajoe
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