Posts Tagged ‘selloff’

Notes From Underground: HIGHER OIL … Greasing the Skid or Lubricating Liquidity

February 23, 2012

Sorry, couldn’t resist the obvious. Many MOONS ago if OIL PRICES were rising the BOND MARKET WOULD BE GETTING SOLD, EQUITY MARKETS WOULD BE STRUGGLING AS IT WAS FEARED THAT THE FED AND OTHER CENTRAL BANKS WOULD BE RAISING RATES TO STEM THE FEAR OF INFLATION. WHAT A DIFFERENT WORLD IN WHICH WE INVEST. As oil prices head higher, the bonds and equities both rally as did the PRECIOUS METALS.  SO WHAT DYNAMIC MAY BE AT WORK?

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