Pretzel Logic

Gaza War: Expect a Spike in Oil, Gold

Regarding "Higher oil prices will be the death knell for the recent modest rally in global stock markets and the impact of higher energy costs " -- if you overlay a chart of oil and the SPX, you will see that the two have been moving in tandem for several months. Modestly higher oil prices would be bullish for equities, not bearish. I expect oil to rally to $65-85 before crashing to new lows on its next downleg.

Gold lost its luster as a war safe-haven when Russia invaded Georgia (look at a GC chart if you missed it). I doubt most investors have forgotten that lesson this soon. I expect gold to see the $600's before it sees the $1000's again.