^ The weak dollar is the main reason for 70$ oil, that, and the fact that the world IS recovering from total collapse in world trade last september.
Oil overshot to the upside to 147$ and it overshot the downside to 36$.
The common perception seems to be that oil should "be" priced at like 50-60$ is in my opinion "fantasy".
Part of the reason this portfolio is commodity based is due to the fact the long term outlook for the dollar is bleak.
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Originally Posted by TSR2 I have pulled out of DXO , just taking my profits ! |
Why? Are you aware that DXO returns are also linked to the monthly t-bill index and that any rises in interest rates will cause DXO to spike. It could go to 25-30 bucks in the next 12 months from its 4.50$ level now.
USA has to start raising rates soon!