--This could be the dip you’ve been looking for. Goldman Sachs released a note overnight warning of “nascent signs of oil demand destruction”. This is another way of saying that when oil costs over $100/barrel, people find a way to use less of it. The Goldman note coincided with a tactical retreat by commodity investors.
--NYMEX crude was down another three per cent yesterday and is now down six per cent in the last two days. It joins oil, gold, and copper in the commodities complex in the correction phase. Some of the wire services report that because high oil prices damage global growth rates, you don’t need to hedge against inflation anymore with precious metals.
--This is wrong.
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