Sunday, June 22, 2008

Now I'm Worried

Barrons, the financial weekly that is wrong with alarming frequency, is calling a top in oil this weekend. Could it be happen?

"...prices could fall to $100 a barrel by the end of this year if Saudi Arabia makes good on its pledge to increase production; global demand eases; the Federal Reserve begins lifting short-term interest rates; the dollar rallies, and investors stop pouring money into the oil market. China raised prices on retail gasoline and diesel fuel by 18% Thursday, in a move that is expected to curb demand."

The folks at Barron's call themselves "value-focused" or something like that. They're usually negative on any security that may be expensive by any metric.

Since you can't value commodities the same as paper assets, I'm not sure what to think. I'm not going to run out and buy a Hummer, though.

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