The Minneapolis bridge disaster is horrendous. I extend my thoughts and prayers to those who have been affected. On the economic side, I am sure that this tragic event is going to cause governments to look at their infrastructure with more critical eyes. I expect that once our infrastructure is more carefully and thoroughly examined, governments will find that much of the infrastructure is in need of significant maintenance. Unfortunately, we are in a global heated economy where the demand for steel, cement, labor and other inputs are expensive. Obviously, engineering, procurement, and construction (EPC) companies will benefit, but they were and are doing well already because of the global commodities boom.
I am not sure what to make of the markets, so unlike many pundits, I have said little. Reality is, I simply have no idea where the markets are headed to next. I note that oils continue to do well as the oil price begins to flirt with $80 plus. Perhaps I am just naïve, but I think at some point—some point soon—that oil prices will matter and will negatively affect the economy. But so far, the markets just shrug off higher energy prices.
Like everyone else, I am watching more hedge funds fail, weakness in the financials, and late day rallies. What does it all mean? I keep thinking that we are headed lower. But I have been thinking that for awhile. For now, I am just sitting back and watching. I have made no trades recently, though I am wondering if I should have purchased some oils into the recent swoon. My guess is that there will be more opportunities for everyone to purchase stock lower because I do not think we have touched the bottom yet. So for now, I am just watching and waiting.
Calgary model Judith Aldama is featured in the photograph above, which is hosted at Flickr. If you click on the picture of Judith, you will be taken to where you can view a larger version and see more pictures of her.
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