I can't say it better than Phil Davis. What a beautiful summary. Spot-on. Rally caps on everyone. Cash is kindling to start fires. You better own stock of companies with product or services that are, in themselves, inflationary, to outpace inflation and make bank. Here is the truthiness (condensed; click on the link to read it in its entirety): http://seekingalpha.com/article/31662 Options Trader: Thursday Outlook Posted on Apr 5th, 2007 Phil Davis submits Iâm very excited that Paulson and Bernanke have adopted my policy to inflate our nation out of debt and the market rally is proceeding exactly according to my 12/9 "Burn Dollars to Fight Gravity" scenario. You wonât care that gas is $4 per gallon when a hamburger at McDonalds costs $3 and minimum wage is $20, letâs just make sure we own a few stocks (and little cash) when inflation really starts to kick in. Oil SHOULD hold up into the weekend and it will be very bad for that sector if it doesnât, but the barrel overhang at the NYMEX is severe and 5Mb stacked up this week along so someone better restart a refinery before we go right into glut mode. As I said last week though "VLO and BP had significant outages this week and VLO is up 10% while BP is up 5%. If your stock performed that much better when you had a refinery on fire would you invest in fire extinguishers or matches?" We have nat-gas inventories today and ZMan predicts a small build but, more importantly, he promises an industry review this weekend, which Iâm very excited about! The dollar looks doomed as the Global economy seems to have decided they donât actually need us anymore but the BOE had some mercy today and left their rates unchanged, perhaps giving us a bit of breathing room. Gold is testing $680 now, not on Iran news but on stagflation watch so weâd better hope we donât see wage inflation in tomorrowâs jobs report. Actually hope is the wrong word - inflation is real, get used to it. Weâd better get raises because gas prices arenât coming down and that house we bought doesnât look like itâs going to fund our retirement and now food prices are rising - thank goodness the government ignores food and energy or things could look ugly!