Wednesday, July 30, 2008

OIl will not drive stock market forever

Look for a disconnect between the price of oil and the Dow Jones very shortly. Every drop in oil price brings gain the Dow. Every gain in the price of oil brings a drop in the Dow. Inflation is here. Soon, more normal cycles will prevail. As interest rates increase in response to deflation of the dollar, investors will move away from stock and into interest bearing accounts. This will be more powerful effect than the price of oil.

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