In case you’ve missed it, after the rally, energy stocks have continued to get their ears boxed, pushing lower. Oil, gas, nuclear, coal, … the whole sector is getting the hot blade pressed to their necks.
That statement does not transfer to the commodities themselves. Gasoline is nearing $4 a gallon again here in Michigan. Coal prices are higher. Natural gas prices are higher. Oil prices are higher.
That’s a rough divergence, and one that will probably be reconciled with commodities hanging themselves in suspension. The energy companies are going lower because actual business is slowing. Higher prices for goods will not help that problem.
But we saw all this last year. The summer has been slow; but as soon as prospects for Santa are added to the equation, it’ll be a holiday miracle. Only Europe somehow going endothermic on the planet, dragging in all the energy and freezing out everywhere else, could possibly ruin that.
So continue to have cash, but avoid betting against the world outright. A continent of miscreants will NOT be ruining eggnog – not for me, and not for you. We will ignore them if it is at all possible to do so.
Get ready, because in another two months, it’ll be sweat pants time…as horrible a thing as it is beautiful.
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