Who would have guessed… the market, that’s who!
Investors are starting to realize that the rise in oil prices has been driven by speculators and not fundamentals. As Ali Naimi, Saudi Arabia’s oil minister recently stated, “The oil market remains well-supplied. The kingdom’s stance that the spike in oil costs stems more from financial speculation and unwarranted investor sentiment than industry fundamentals”.
With oil finally off a few bucks, stocks are soaring again and should continue to do so for the immediate future. There is still a lot of catching up to do for investors. Many people fled to bond funds in the last two or three years, which is really not long-term investment money but just lazy investors afraid to go into stocks. Eventually, they will feel like they’re missing out and “panic buy”, creating a catch-up rally. That will be the top.
Regards -Keith Springer