RE: How long does do a full tank of gas last for EU5 Sep 2022 20:09
USD overvalued….??
“…… I think we are very near peak dollar, and that the currencies you should buy are precisely some of those that have done worst.
That is to say, the pound sterling, and the Japanese yen. The US dollar is wildly overvalued, and the lesson of the tech wreck is that if something appears to be expensive, it probably is.
I think that we are also close to, if not already at , peak inflation, and that we can now see that in wholesale markets . Oil prices have fallen a lot, food prices are now back to pre-invasion levels, and gas prices are beginning to come down.
Why are these things happening? One, there is what is called demand destruction, which is when consumers and industry just use less, for instance ,gas, because it becomes too expensive.
Second, the European Union and Asian countries have been buying gas at whatever price they can get it at, all the way through the summer, and some of their more extravagant purchases they will live to regret. But for now, it means tanks are almost full and that despite the shutting of the Nord Stream 1 by Gazprom, gas prices have probably peaked.
Third, labour market tightness has also peaked and that will alleviate wage led inflation in coming months . The Great Resignation will soon become the Great Scramble for jobs. Mark my words!
And lastly, substitution is occurring at a rapid rate; the Russians will be increasingly marginalized as oil and gas producers, and prices of their output will continue to fall. The growth of nuclear around the world will be astonishing, the growth of renewables, especially wind , continues apace, and the (hopefully temporary) revival of coal production will see continuing falls in energy prices to levels that are consistent with stabilizing economies.
Currently 14% of world GNP is devoted to energy, up seven times in three years. It will go into sharp reverse if it already hasn’t begun to do so.…..’
https://masterinvestor.co.uk/economics/mellon-on-the-markets-autumn-outlook/?mc_cid=47d28b606b&mc_eid=418bda054f
Sticking with gold, gas, oil and niche!
Usual caveats
Trek
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