King Tut Is Gonna Put It In Everyone's
But, do you really believe the future is set? Well in one scenario the following can happen:
First, Egypt's Suez Canal, which connects the Mediterranean and Red Seas, moves millions of barrels of oil a day to Europe and eventually to economies that need the oil like the US. Well the canal gets closed and this raises oil prices for Americans. Gas prices rise. People start using gas more wisely. Then as a result, people go out less. Places that require you to actually be there in person like restaurants, fast food, entertainment, etc. start to see a drop in customer volume. Stocks like MCD and YUM take a hit.
As gas prices increase, you basically have people saving money. So those electronics people were planning to buy will have to wait. Sorry Best Buy (BBY). Enjoy another quarter that doesn't meet estimates. If cars are the issue, well people sure aren't going to dump more money on a newer car. So Ford (F), enjoy your days ahead when consumers start saving their current cars and doing their own maintenance.
On top of that the economy is still so-called "recovering". Anyways, you have rising gas prices and rising commodity prices but employee checks remaining about constant. So that national savings rate that seems so important. Current averages are in the negatives actually which explains most of the problems this country is currently facing. This is in part the result of the large and increasing budget deficit, and in part the result of a decline in household savings due to low interest rates and rising asset prices.
The curse of King Tut lives.