Wednesday, July 11, 2012

The stock market is overlooking some good news in the economy:
  • Unemployment is a little lower
  • Automobile sales are higher
  • Rail car loads are at a five-year peak
  • Lower oil prices should create more discretionary income
This last item is a game-changer. As we unearth our shale gas and oil, energy prices will trend lower for many years. More domestic energy should reduce our dependence on the Middle East. We may become less involved in their politics - which may reduce our federal spending in that area.

This graph courtesy of InflationData.com http://inflationdata.com/inflation/inflation_rate/Historical_Oil_Prices_Chart.asp

This may be an opportunity to add stocks to your portfolio.

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