A new aristocracy is forming in the marketplace, as the new born investors in distressed commodities express themselves through higher prices.
These new men of industry are above all stations in society. Their milieux is one of extreme wealth and substance. Stocks like CHK and BBG are in their portfolios from the lows. They feel oil will double from here and their new Greenwich mansions will be completed by next fall, should everything go according to plan.
“Isn’t it wonderful?”, asked the wife of one of these illustrious investors.
I cannot begin to describe how wrong this rally in commodity related stocks is. I do not pretend to hold all of the answers to life and I’ve had my fair share of failures throughout the years. But this will not be one of them.
This perversion of reality, this melt up in commodity related stocks, will end. When it does, it will end very badly indeed.
In the meantime, the market is running higher again, save biotechs. I don’t expect the rug to be pulled just yet. I do expect said rug to be completely gone, however, come May.
Enjoy the rally while it lasts.
If you enjoy the content at iBankCoin, please follow us on Twitter
gotta like/love the vix, tza, dwti risk/reward here,……
The housing market in the Washington DC area is nearly priced to perfection.
The Median home price to Salary ratio is quite high; consideering the high salaries, that puts house prices at a considerable premium. The common view is that houses prices can’t fall in the region for long becuase of the federal government’s indirect support. That view held through the housing crash as the DC market rose tremendously in the run-up and quickly recovered after the crash. The DC housing market goes with the Federal Budget. If the US gov’t ever does start axign bdugets, the housing market will crash hard.
Also, commercial real estate vacancies in the DC are at 11%, VA and MD suburbs near 17%. Unemployment is low, but just where does everybody work?
They all telecommute? Employers must be cutting costs by not buying or renting offices.
Yes, I think a lot of them do.
There’s some collusion going on with miners. Shares rising like they are the most precious on earth. Give me a break.