Fluctuating prices is my addiction, when the stock market closes I itch like a crackhead yearning for a fix. Left with just thinking about the market, I’ll share some thoughts.
Earnings this week should provide more insight on how high-income consumers are spending money. On Tuesday we have Saks and Macy’s (Bloomindales), and on Wednesday Toll Brothers reports.
Marc Faber recently reiterated some valid points on he is bullish on real estate. Essentially, existing supply and the rate of new construction will not satisfy future demand from immigration and population growth.
I am considering getting long oil, even if only as a hedge for my personal gasoline consumption. One area of LA already has nearly $5.00/g gas.
Of course $5 gas is not sustainable in the long run, demand destruction occurs above $4, people will adapt and consume less i.e. car-pooling, utilizing public transportation, staycations, green technology, etc.
In the short run anything can happen with current geopolitical risks in the Middle East. $5 gas could be a fantasy in a couple months.
Greece will be the recipient of another bailout package. Germany is the boss and Merkel will not tolerate a Euro-Zone calamity in an election year. She is popular amongst Germans, why risk screwing up an easy re-election?
Greece still has cancer and will eventually default, but this scenario will have to wait until Merkel’s next term.
Railroads look oversold and attractive. UNP is my favorite prospect. NSC also looks good if it can get above the 200 SMA (~$70).
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Good post.
You like trannies in general, or just the iron horse?
I like UPS ftw.
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