Be Careful What You Wish For

More news in the oil complex over the weekend as the non-OPEC players threw in with their OPEC counterparts and pledged production cuts which, like OPEC’s, will likely not help in the long run.  In fact, they just might find the cure is worse than the disease.

Sure, it was enough to drive prices higher in the here and now.2016-12-12-cl-60-0610

But, stocks have shrugged it off.  As is our central thesis, higher oil prices might be good for producers, but it’s a negative for central bankers who — tasked with balancing the inflation/interest rate scales — will have a difficult time preserving stock prices at the same time.

Rising rates in conjunction with growth and reasonable debt levels — no problem.  But, that ship sailed about $15 trillion ago.

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