Jack Beyer's  Instablog

One reason consumers should be wary of oil is inevitable inflation. The effects of quantitative easing have been clear on unemployment dipping it below 9%, but the CPI has yet to adjust. In the chart above you can see the last three fiscal years recorded CPI increases of 0.1%, 2.7%, 1.5%. With the $900 billion dollar bond buying stimulus program to finish in the third quarter, and the deficit climbing towards 15 trillion the reverberations will be felt. Although the weakening dollar has kept input costs low as well as allowed for easy exporting, the end of quantitative easing will stifle profits. In a few months as gas prices begin to adjust to inflation I believe that alternative energy will gain footing. Obviously uranium took a big hit after the unfortunate set of events in Japan, but did the public overreact? Cameco Corporation (CCJ) looks to double their Uranium output by 2018.  A recent Chinese halt on nuclear plants might hold Cameco's stock for the time being. A great alternative is the ETF URA, which provides exposure to the global uranium market. As companies continue to innovate and create more cost and energy efficient solutions gas will become far less important. For the time being oil may dominate the energy market, but keep your eyes open. Sustainable alternative energy is dangerously close to becoming a reality.