13 October 2009

Another tumble coming

People may be cheering the rising loonie.

Some people may be rubbing their hands with glee at the current and forecast prices for crude.

Gold is wonderful, if you own it already.

But, note the references in those articles to “weak fundamentals” and the fact there haven’t been many “signs of a pickup in the underlying oil demand in industrialized countries”.

The same sort of underlying weakness  - particularly in the American economy  - is what fuelled the surges in oil prices before the peak in mid-2008.

Remember what happened after that, right?

Well, get ready again.