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| We're starting the week off a bit rocky with futures reacting negatively to the rise in energy prices and interest rates. Crude oil is trading north of $80 and the 10-year Treasury yield is now trading above 1.60%.
The extended rally in crude oil is pushing it near multi-year highs, boosting energy shares. However, it's also igniting investor fears of the obvious inflation running rampant in the markets.
And to add more fuel to the fire, both of these factors happening at the same time is ominous for the "inflation is transitory" case...
It's been my view for a few months that the Federal Reserve would be unable to deny the rise in energy, and that it would become a problem not just for the markets but for the real economy as well.
This week could be the beginning of what I see as a potentially parabolic shock rise in energy prices that'll cause the same chain reaction in oil and gas… | | |
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Jeff Z | Jeff Zananiri spent over two decades on Wall Street learning how the best made consistent money in the market. | | |
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