Market Risk

[dan_s]

Today is a perfect example of why we do not want big spikes like this in the oil price. OIl is up almost $8/bbl today and half the stocks in the Sweet 16 are down, even those heavily weighted to oil.

FEAR and GREED drive the markets. Today, fear is in control. As investors see their portfolios decline they tend to "throw out the babies with the bath water" and run to cash.

There is plenty to worry about
> China and India inflation starts to impact the world’s real growth rate
> Currency War escalates into a Trade War
> Eurozone sovereign debt issues worsen
> Unrest in the Middle East spreads
> Inflationary effects of high oil price may lead to demand erosion

[setliff]

the spike was limited to wti--i am believing more and more it is the gap closing than anything else.