Oil Bubble?
My friend Paul points to this report by Factset, titled: An oil bubble to rival the internet boom.
The difficulty with the bubble moniker is determining exactly how much of the price is being driven by purely speculative factors. With Crude, a variety of forces are driving prices: A combination of both fundamentals (increasing demand, constrained supply, pipeline problems), technicals (Trend, money flow, etc.), along with the geopolitics of two Middle East wars -- as well as some speculation.
Additionally, we have seen the general perception of commodities shift, where they are now seen as a more legitimate asset class for portfolio managers, along with Equities, Fixed Income, REITs, cash, etc. than it has been previously.
Even If I disagree with the bubble thesis, I love any report festooned with lovely charts, and this one is no different:
>
Source:
An oil bubble to rival the internet boom (PDF)
FactSet, 3 May 2008
http://www.factset.com/websitefiles/PDFs/outlook/english/03-05-2008english.pdf
Friday, May 09, 2008 | 10:51 AM | Permalink
| Comments (65)
| TrackBack (0)
add to de.li.cious | 
digg this! | 
add to technorati | 
email this post
TrackBack
TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e552311ab68834
Listed below are links to weblogs that reference Oil Bubble?:
Comments
"...as well as some speculation."
Some speculation? Ya think?
Posted by: John Navin | May 9, 2008 11:13:52 AM
The comments to this entry are closed.
