Dr. Duru

The Bear Reaches Out for Commodities

I took a bit of a shortcut with that statement. Think about it this way: the government spends a lot of $ to support consumer spending. For example, the latest stimulus package that went out was not paid out of a surplus...it was simply added to the debt. And some portion (a lot?) of that spending went to oil. All the tax cuts that we hear about? Again, mostly just added to the debt. And, again, this money helps support consumer spending on energy, etc... And how do we fund these programs? Selling Treasuries. And who is increasingly buying these Treasuries? Overseas governments and investors... And don't forget to add in the huge energy budget of the military... Oil is certainly not driving up the debt all by itself. Just one piece of the puzzle.

DryShips Deserves More Love

Typically, if a stock keeps going down in spite of what look like great fundamentals, it means that the market is guessing that the future prospects are getting worse - regardless of what has happened in the past. I have seen a few clues as to why you good people may not believe the current story, but what about the potential that market is skeptical about growth prospects in the face of a US and/or global slowdown?