7/21/2007

Markets

It is clear that foreign money is driving our market higher, not domestic money. Why? You buy our stocks with cheap dollars in the anticipation that it will reverse and money will be made on the currency; if the stock goes higher that is simply a benefit. This market is a currency speculation for foreigners.

Commodities: corn and beans are roaring and this ain't good for our meat processors and ranchers. These prices will force many out of business due to the expense of raising stock on expensive feed. Energy: what can I say that you don't already know? We stand at the edge of the Abyss, always staring down into it. One day the Abyss will look back at us. One product I'd bet on: coffee. The rains in Texas may eventually ruin the entire cotton crop; it's cheap now but could explode.

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