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  • September 22, 2008 02:43 PM EDT by Brian Sullivan

    Oil & Gold Soar (or, Give Me Something I Can Touch)

    Noted economist and newsletter editor Dennis Gartman advised his readers today that we may be in for a new period of reflation.   Certainly looks like Dennis was right.   Many of the 'hard' commodities like oil and gold are soaring today.

    The reasons range from fear of a devalued dollar from higher deficits to a push into 'real' assets as stocks resume their fall from Fridays likely-short covering rally.   It may also be that while there are so many questions around how this trillion-dollar rescue package will ultimately play out - and cost - that the short term money is moving into what's working and showing momentum.

    The other aspect to watch: contract months are changing.   There is a chance according to Fox Business' Eric Bolling that many hedge funds were caught on the wrong side of some trades and are rolling positions over.

    We will know tomorrow.  If the move higher continues, it may be more of a longer rally than just a covering and contract moving position change.


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Roger D Braasch

I believe with a world wide oil supply situation, that we have reached the point of no return. Because of many years of not drilling for more oil where there is plenty of oil (offshore drilling) and/or not developing every type of approach for creating more types of energy, it is impossible to stabilize our economy without stimulating more oil demand. Intense increases of oil demand, caused by worldwide economic recovery will obviously choke off any type of prosperity and keep us in or near economic recession conditions. America is paying a very heavy reprice for no energy growth and the financials have greatly aggravated the world's economic person. John McCain must win, or america's economy will die until we get a competent conservative president and congress in Washington DC.

September 23, 2008 at 7:31 am

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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