Investing, Stocks

Today most commodities took a dive along with the US dollar. Is this the turn many have been waiting for? It seems the market has been unstoppable, today taking only a small loss. A few articles I came across still suggest a major growth spurt for large cap companies. I do not see where this growth will come from. As oil, gas, and industrial metals continue to rise in value the cost of consumer goods will start to rise as manufacturers seek to recoup lost revenues. If this is how the market works, then consumers will purchase fewer products, and we will see a recession.

I would also like to address what the market has coined the “Volatile Energy Sector”. Yes energy has been volatile, although the nature of the volatility is questionable. When I think of volatile, I think of rapid gains and surprising losses. In this market energy only seems to be going up. Failing to consider the effects of inflation in order to make the energy market look good is a significant mistake!

What does it mean for consumers as the US dollar loses value in the world market? Perhaps more people should be talking about the effects. I see it as a significant reason for the price of imported oil to rise, and continue to rise as the dollar loses competitiveness in the world economy. It will also be a deterrent from companies purchasing goods from overseas because it will cost them more money.