Stewart Cowley, manager of the Newton International Bond fund, explains that while the growing bubble in oil prices may be trouble for commodities investors, it is good news for bond investors.
So we are progressing nicely now - Goldman Sachs has told us that we should expect a 'super spike' in the oil price to $200/barrel. This comes on top of warnings from Russia that we should expect oil to hit $250/barrel. What was a parabolic trend for the oil price has gone exponential and now into hyperbole. If you have been around long enough, this sounds like an end game. How many of these bubbles do we have to go through to recognise the pattern? You only have to look at a couple of examples in the recent past - the NASDAQ and Chinese stock market - to see what happens over and over a...
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