Well, gang, it happened. I had my first sighting of premium gasoline top 3 bucks at the pump this morning with a 30 cent spread over regular. Any wonder why I remain positive on oil and oil stocks?
Today's column was on energy and I want everyone to take particular note of the oil chart priced in the basket of currencies that make up the US Dollar Index. In other words, oil priced in a combination of Euros, British Pounds, Japanese Yen, Canadian Dollars, Swiss Francs and yes, the critically important Swedish Krona. :-p
A lot of talking headery has been dedicated to telling the public that commodities are strong because the dollar is weak. In the words of Col. Sherman T. Potter, "horse hockey!" Crude oil is rising whether you price it in the currency basket (sans US dollar), or any of the component parts (well, I did not check Krona). It is even rising when priced in Brazilian Reals so it is fairly safe to say that crude is rising a heck of a lot faster than the dollar is falling.
I repeat what I have been saying ever since the first expert invoked the D-word many months ago. Rising bonds meant no deflation. And now rising commodities mean no deflation.