Loading ...Tax incentives? Currency exchange rate differential. A major oil discovery? re Right now capital is going into the USD and the US Stock markets and out of Bonds. Note also add real estate.
How long can that sudden recent trend into dollars and out of bonds last? And the driver was the imagined prosperity of future because of the election results. The fantasy is always or often, better than the reality. Right?
And news? For example, how many times did we hear news about a frost situation going to Florida, and capital flows into orange juice contracts. And higher retail prices. And then the frost didn’t come.
Remember “peak oil” news? And “Twilight in the Desert”? “reveals a Saudi oil and production industry that could soon approach a serious, irreversible decline. In this exhaustively researched book, veteran oil industry analyst Matthew Simmons draws on…”
Result? $145/bbl oil and later hit $26/bbl. Plenty of oil these days.
I think the future looks better, but will be “weird” first.