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Those pesky “fundamentals” don’t matter anymore

WSJ:

“People are seeing oil as a haven for their money that they’re taking out of stocks,” said energy analyst John Kilduff, at brokerage MF Global in New York. ” Right now, you just have to turn a blind eye to fundamentals. They will not serve as a good predictor of where prices are headed.” Crude futures jumped to an intraday high $108.21 a barrel…

Fundamentals just don’t matter anymore. (Where have we heard that before?) And the head of OPEC agrees. The levitation act continues. How will it end? Or perhaps it will just go on forever.

This entry was posted on Tuesday, March 11th, 2008 at 12:20 am and is filed under General, business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Those pesky “fundamentals” don’t matter anymore”

  1. MarkD Says:
    March 11th, 2008 at 2:14 pm

    It’s the Internet bubble of the 21st century. Like all booms, look for this one to end badly.

  2. gs Says:
    March 12th, 2008 at 1:06 pm

    Fundamentals just don’t matter anymore…The levitation act continues…

    A bubble is indeed the most plausible interpretation, but it’s always possible that the market knows something.

    This seems pretty doggone fundamental:

    Adm. William Fallon, the top U.S. military commander in the Middle East, is resigning his post at the end of March, in the aftermath of an article that portrayed him as at odds with the Bush administration over Iran.
    …
    Senate Majority Leader Harry Reid (D-Nev.) said in a statement he was concerned that Fallon’s resignation “is yet another example that independence and the frank, open airing of experts’ views are not welcomed in this administration.”

    Note that Reid’s statement is partisan boilerplate; it does not explicitly warn the Administration against acting against Iran.

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