Um, the financial whiz kids and currency traders seem to be waking up to the fact that the US is stumbling face first into a recession, taking the demand for our oil and metals along with it. Say buh bye to parity ![hello :hello:](https://www.autos.ca/forum/Smileys/CarTalk/hello.gif)
Oil is hovering near triple digits (it actually was pushed up to $100 very briefly) in spite of the US slowdown.
It hasn't started to bite yet. Patience grasshopper.
Oil prices are being driven by greater-than-ever global demand: there's not enough oil being produced to go around, thanks in large part to China and India's massive growth. If Americans don't buy it, someone else will.
That's the conventional wisdom, see my sig for my opinion about the conventional wisdom. (Bonus points if you know who coined the term conventional wisdom. Don't use the Google, that's cheating.)
I disagree, while strong demand has been part of the story behind the large rise in the price of oil over the last few years, I'd argue that the slowing of growth of supply (despite record investment) is the main driver of current prices.
The US is still the biggest consumer of oil. US oil consumption tends to decline during recessions.
Gold has been shattering records lately, too.
In nominal terms, yes. In real value terms it hasn't even gotten halfway back to what it sold for in 1980. I was born in 1980 and in my lifetime there hasn't been a worse performing asset class than gold/precious metals.
The EVO is a hell of a car and so is the STI and both of them are now cheaper than they would have been 5 years ago.