Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of the PreMarket Prep website, joins us to discuss the energy sector, inflation, deflation, and a potential rotation starting back into growth stocks. We start of with the continued slide lower in most commodities, and that it finally hit the oil prices, and he noted this showed that the pricing up at $120 was impacting the demand side of the equation. With the range of pricing projections we see in the market, Joel is more on the side of expecting oil prices to keep pulling back in the near term, and that the commodities pullback we’ve been seeing should start lowering the CPI readings moving forward.
We noted the high US dollar today, and that really despite all the focus on inflation, that the tide may shifting to a more deflationary backdrop. We wrap up discussing the recent weakness in Warren Buffet’s Berkshire Hathaway (BRK-A) and the very recent first pop in Cathy Wood’s Ark Innovation ETF (ARKK) may indicate an interest for investors to start rotating out of value and back into growth. We’ll see if this trend builds any momentum as things unfold over the weeks and months to come.
Click here to visit the PreMarket Prep website to follow along with Joel’s market commentary.