People are talking about the rising price of gas. This matters not only to your wallet, but also to Wall Street.
Stocks aren’t the only thing people invest in on Wall Street. There’s also bonds, bills and commodities. Crude Oil, which is used to make fuel for cars, planes, trucks, trains and boats, is a commodity. So are things like gold, silver, copper, wheat, cotton, coffee, sugar, corn and pork bellies (just to name a few). The price of a commodity changes constantly due to supply and demand; this can change in a second due wacky weather, unrest around the world, or any unexpected disaster.
Tension in the Middle East, home to most of the world’s crude oil, is a big factor in the recent run-up in crude oil prices. The increased cost is being passed on to the pump and your pocketbook. Regular gas is going for an average of $3.60 a galllon, that’s up 42 cents over a year ago. Some people expect the national range will reach $3.75 to $4.15 a gallon.
Are you thinking a few nickels and dimes here and there doesn’t matter much? Think again. Summer is coming and so is the busy driving season. More money that has to go in the gas tank may mean less driving, and less money to spend once you get where you’re going. The worry is that consumers may pull back on all their spending, which could put the brakes on any economic recovery.
I’m going to start paying more attention to prices at the pump.
Peace Love Profits,