With oil now trading at $68.45.. how much longer can the markets ignore the high price of oil? If I'm not mistaken, today's closing price was the 4th highest in history. With the price up 19% in the past 5 weeks, you would figure the inflationary consequences would begin to factor into the market. fwiw..maybe the financials have begun to notice.
i agree 100% it is directly linked to most every product we see or touch, and hence inflation....this is 1 reason why i am bearish on 2006.
I think the markets will ignore oil until gasoline starts going up at the pump. That's what the average guy thinks of when he thinks of oil prices, they don't think about how everything around them is made from, with or moved by oil, so for now they're continuing to spend more than they make.
The markets will ignore oil until the media pundits surreptitiously find that oil is still strong with a weaker stock market. Then, it will once again be oil's fault.
============ May or may not be oil,major media like TRB sector still in good ,well deserved downtrends. But real strange the way AMR & LUV long stock buyers just dont seem to care about the price of oil last 12 months ,at theses prices anyway. Classiic reason to consider fundamentals; but never did over weight them.
hey---- Martin Zweig must be confused as hell by now --- what was his famous adage: "don't fight the Fed". Hell - oil is manipulated up to absurd levels and %rates have been rising for how many Qs ? Yet the markets keep shrugging it off. don't look now but someone is going to yell TIMBER soon - the Q isn't whether --- but WHEN and from what level!