COMMODITIES Forget stocks, bonds, real estate. Those are all losers at these prices. Commodities were so undervalued for so long that even after a big move, they are still undervalued. The whole commodities bubble theme is why Wall Street analysis is useless. They will pump stocks forever and deride anything that diverts funds away from stocks like commodities. Crude oil at $125 sounds like its too high until you ask someone what they need more, gas for their car or an ipod or Blackberry. Priorities are priorities. Ipods and Blackberries are not essential items. Oil is. Anyway, we've got a long long way to go for this commodities bull run, this is no bubble. If China and India weren't pumping out cars and industrializing like mad, if people stopped driving and rode the buses or there was a lot of public transportation in the US, I would call it a bubble. But that's not the case. The Chinese can't get enough of oil, corn, beans, metals, etc. They don't want stocks. They want commodities. The marginal buyer is coming from China, not from the US. They want their oil. And they will pay much higher prices than $125 to get it.
This is debatable. Hard to gauge their appetite for stocks when their communist government forbids ownership of non-Chinese equities.