“Snickers-Noodles Surge Drives Cooking-Oil Stocks to 1974 Low”
I get a hundred or more emails per day and try to quickly scan their importance to me. I know I hurry through this process too fast some days. There are times my mind races ahead of my eyes sometimes leaving key words out. Today was one of those days. Take the headline above that I stole from today’s Bloomberg web site. When I was scanning my email full of commodity news I thought that headline read “Snicker Doodle surge drive stocks to a 1974 low” That got my attention! …I like Snicker Doodles, really I like the smell of them baking better than the taste. I knew we haven’t had any at my house lately but had no idea there was a crisis.
I also read this morning, there is a new ruling that provides federal funds for replacing pumps at your filling station so they can handle E85. Bet you didn’t know about that one!
What makes something you own valuable is that someone else wants it. When practically everyone has what you have neither are worth as much. We can’t all be in the restaurant business, neither can we all have our wealth in gold or get long oil. Right now seems money is running to the commodity market. I am sure there will be a bust there sooner or later.
From individual investing to government sponsored business investments we need policies to encourage diversity of investment not policies that encourage sameness. Rather than subsidizing a single business sector, tax incentives for home ownership, or a tax incentive for my 401k, provide a reward for creating something new.
However, in my business it is not uncommon for money to chase the latest hot news tip. Gold, oil, corn, cotton they are today’s hot thing in investments. Money has been rushing to them. Just like government money flows to the people’s hot button issues rather than the soundest thought.
So since you are not buying enough ethanol and the problem has to be there are not enough pumps, rather than a new idea, you get government paid for gas pumps, to pump government subsidized ethanol, to put in your government subsidized car (remember cash for clunkers?). Is anything in that origianal?
In comparison I guess my latest opportunity doesn’t sound so silly..So let’s fire up those ovens and get long “Snicker Doodles”. I hear the demand is running really high.
Does anyone else smell a bust coming?
David
