Energy Bubble Bursting?

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    Posted: 24 May 2010 03:18 PM

    Market is worried that if China bubble burst, it would burst the energy bubble.  Suddenly, instead of buying energy stocks to hedge inflation, investors are now worried about energy bubble burst and possible deflation (double dip) in US.  Energy and metal prices together with their stocks are dropping fast.  Is it time to pick them up because inflation in US is inevitable?  When would inflation kick in?  Some say is a couple of years from now.  2012?  So is too early to pick energy stocks.  In addition, agricultural stocks are also falling, thot with global boom, we eat more and buy more cars?

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    Posted: 24 May 2010 05:21 PM #1

    Mace - 24 May 2010 06:18 PM

    Market is worried that if China bubble burst, it would burst the energy bubble.  Suddenly, instead of buying energy stocks to hedge inflation, investors are now worried about energy bubble burst and possible deflation (double dip) in US.  Energy and metal prices together with their stocks are dropping fast.  Is it time to pick them up because inflation in US is inevitable?  When would inflation kick in?  Some say is a couple of years from now.  2012?  So is too early to pick energy stocks.  In addition, agricultural stocks are also falling, thot with global boom, we eat more and buy more cars?

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    Mace, I have heard about the China bubble bursting for years, I just do not see it happening. That’s just me though. I will agree with the eating. More mouths, more food needed (I eat like a horse LOL ). Cars on the other hand will one day be limited. The roads in the US are reaching max capacity. This is a problem because there is no more land to develop major highways into large cities.

    Mace, fresh water is the next dilemma, problem is we kind of need the stuff to live. :bugeyed:

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    Posted: 25 May 2010 04:11 AM #2

    According to this Bespoke i/v group, only 7% of the S&P 500 companies are above their 50-days EMA.  Four of them are food companies, CPB, HSY, WFMI and K.  BIG also expects an impending short-term rebounce.

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