Comments on: High oil Prices are Now Oozing into the Entire Economy http://www.dailyreckoning.com.au/high-oil-prices-2/2008/06/03/ An independent perspective on the Australian and global investment markets Sun, 08 Nov 2009 10:25:55 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Dan http://www.dailyreckoning.com.au/high-oil-prices-2/2008/06/03/comment-page-1/#comment-25592 Dan Wed, 04 Jun 2008 18:51:20 +0000 http://www.dailyreckoning.com.au/?p=2801#comment-25592 Picking price peaks and troughs of anything is pretty darn difficult. You can justify your guesses to a certain extent, and some folks must be better at it than others, but it all seems a bit black magic to me. That's not to say you can't state that something is overvalued and will come down in the future - it's just that the nature of markets makes it next to impossible to say exactly when. Take USD (please - ba dum bum). I've been watching it sink since 1.20 euros or so. And at every .1 interval I thought to myself "1.40! Ridiculously low! This must be the tipping point!". I even thought the same thing at 1.60 even though I know I thought wrong the previous 4 times. All we know for now is that oil is going up and USD is going down. And at some point in the future, both trends will reverse themselves. When and by how much? Will they go flat for a while first? Anybody who claims they know that is bullshitting you. Picking price peaks and troughs of anything is pretty darn
difficult. You can justify your guesses to a certain extent,
and some folks must be better at it than others, but it all
seems a bit black magic to me. That's not to say you can't
state that something is overvalued and will come down in the
future - it's just that the nature of markets makes it next
to impossible to say exactly when.

Take USD (please - ba dum bum). I've been watching it sink
since 1.20 euros or so. And at every .1 interval I thought
to myself "1.40! Ridiculously low! This must be the tipping
point!". I even thought the same thing at 1.60 even though
I know I thought wrong the previous 4 times.

All we know for now is that oil is going up and USD is going
down. And at some point in the future, both trends will reverse
themselves. When and by how much? Will they go flat for a while
first? Anybody who claims they know that is bullshitting you.

]]> By: Curt http://www.dailyreckoning.com.au/high-oil-prices-2/2008/06/03/comment-page-1/#comment-25504 Curt Tue, 03 Jun 2008 22:30:26 +0000 http://www.dailyreckoning.com.au/?p=2801#comment-25504 The only think peaking are the flowers. High oil prices and commondities are here to stay. The only think peaking are the flowers. High oil prices and commondities are here to stay.

]]> By: christina http://www.dailyreckoning.com.au/high-oil-prices-2/2008/06/03/comment-page-1/#comment-25443 christina Tue, 03 Jun 2008 12:54:47 +0000 http://www.dailyreckoning.com.au/?p=2801#comment-25443 What I think is also very worrying is the "peak panic" that will one day hit. Rich Dad said to Robert Kiyisaki that "when the gap betwen the haves and the have nots becomes too great, all hell will break loose" What I think is also very worrying is the "peak panic" that will one day hit. Rich Dad said to Robert Kiyisaki that "when the gap betwen the haves and the have nots becomes too great, all hell will break loose"

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