Friday, May 23, 2008

Can't win 'em all

Oil at $130. Damn who would thunk it? Not me. Every once in a while you get smacked and smacked but good by the investing gods. This has happened to me in the past three weeks. I shorted USO when oil was at $118. Needless to say, not a good move.... so far. I'm still in the 'oil is in a bubble camp' though and long term it's going to be well below $100.

The stock markets had a nice little move the last week or so. Again, I'm sticking to my guns and staying a bear for the immediate future. The runup recently was ignited by the inflation report that said - with a straight face - gas prices were down 2% in April when adjusted for such and such or this and that. If you believe that gas prices went down in April, then by all means go out and buy some stock. If you live in the real world, you probably shouldn't as inflation is raging and damn near out of control.

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