Barron’s is going wild over the Dow. The magazine says Get Ready for Dow 20,000.
Why not 80,000? The Dow is up 13% so far this year, the Dow is outpacing both the S&P 500 and the Nasdaq.
Is this yet another magazine curse?
Economist – March 6, 1999 – Drowning in Oil
The economist predicted $5 oil.
Newsweek – April 10, 2009 – Cheap Oil Forever (Why Prices Will Keep Falling)
I can only find a small image.
The Economist which thought oil was going under $5 in 1999 was worried about high prices in 2008.
Economist – May 29, 2008 – RecOIL
That very same week BusinessWeek was “Bracing for Inflation“.
The article is only available to Bloomberg’s “Professional Service subscribers”. However, I captured snips on my blog, and it’s a real flashback hoot.
Growing evidence suggests American consumers, business people, and political leaders should all be bracing for double-digit inflation, probably as early as 2009.
The relative price stability of the past 15 years is giving way to worsening inflation, despite the recent softening of oil prices. The Consumer Price Index for all items shows the inflation rate averaged 2.6% a year from 1992 through 2007 but has doubled since January, reaching an annual rate of 5.6% in July. By next year, the monthly figure could hit double digits, and the inflation rate for 2009 overall could triple 2007’s 2.85%.
I say this not only because I have looked at a broad range of statistics that point in this direction. I also run a private equity investment firm that owns companies in a number of industries—including restaurants, the manufacture of gardening tools, oil and gas exploration services, and distribution of entertainment products such as books and videos—that are already being forced to pass price increases on to the consumer.
The skyrocketing price of oil is obviously a central element in the accelerating price spiral. But a sea change in China’s role is beginning to have a huge impact as well. ….
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