| Exports still Growing -- 6/2/2008 |
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Government spending also factored into a smaller than expected decline. With construction spending an futures orders still falling while prices are rising, can this offset continue? It all depends on whether the global recession is uniform, which it probably will not be. However, as European and Asian consumers spend less, international corporations will look to protect profits. With a devalued dollar, we will be perfectly poised to be a bargain for export products and services. The wild card continues to be energy prices. We are still not seeing strong reductions in the price of oil and natural gas. We are seeing small pullbacks followed by next phases of parabolic movement up. There is a different opinion depending on the expert you talk to. Some say it is supply and demand. Some say it is a speculative market. Some say it is the weakened dollar. There are plenty of other opinions. We think it is a combination of all of these factors. What we do not know yet is how much of the high oil price is due to supply. In the US, we consume over 20 million barrels of oil a day. We produce 8 million. So, we import 12 million which means we are shipping out $1.5 billion of US wealth every single day. Something must offset this. Reduction in demand, growing exports, etc. Everything ultimately rebalances and if US demand is not falling, oil will continue to rise. Simple.Get The Limit Order for $6.65/month with a 3 month membership. The Limit Order stock picks continue to outperform the market, Register for free and check it out. |
