Price Cures Price

A smart supply side economist will tell you, "raise the price of a product and shortly you will have an abundance of it"...oil is being sited as an example as well a copper right now...higher prices from last year are supposed to be producing more product....we'll see...right now that conclusion is right but for the wrong reasons.

We think the markets price to earnings (PE) contraction is not only related to hydrocarbons but the general market as well...the forward PE is as low as it has been only a handful of times in the past 20 years....in other words the market is not expensive and is still discounting all the negative news of the day.....

Imagine dealing with the new forecast in Japan's population currently at 128 million projected to be fall below 100 million by 2046. Now that would be a reason to be bearish on your local market!

Danny Boy seen here has his nose deep in the snow looking for that special pine cone.