Monday, April 21, 2008


After the January melt-down, the stock market has had a nice little run. I would not be surprised to see a pull back in the cards as the uncertainty of the next FOMC move is bandied about before month end. If a pull back does come, it is likely to be accompanied by bad economic news which would serve to cause a correction in the crazy oil market.

I understand that wealthy Chinese and Russians are buying luxury cars. Still, I do not believe the current price of rice, corn and oil are sustainable. If the price stays at this level, I just might buy a moped. I would certainly buy a tiny city car as my second car if one were available. In the short run, a fall in consumption will come from decisions to stay home.

Chip stocks did well today. The more we stay home, the more we will use computer chips.