Three
months ago, we warned that “if the refineries which were
shut down for, or by, the hurricanes are too slow coming
back up to full capacity, we may have shortages of gasoline
for a period measured in weeks.” Our warning was unnecessary.
With
operations worldwide, the major oil companies were able
to import enough gasoline (in place of crude oil) to keep
Americans supplied. Prices jumped and (for a while) we
used less gasoline, but usage is back up to normal and
prices are nearly back to where they were pre-Katrina.
For their efforts, executives of the major oil companies
received a political tongue-lashing from Congress, but
that’s probably in their job description.
I’m writing this letter just before Christmas, but our
summary of six months ago remains the same. The economy
is growing nicely; when we see the data on Christmas sales,
it will help our assessment.
Inflation remains roughly at 2%. Given that, interest
rates and stock prices are fair.
We continue to research good companies, selling at reasonable
prices.
The comments made by Ron Muhlenkamp
in this article are his opinion and are not intended to
be investment advice or a forcast of future events. Copies
of past
newsletters are available on our website at www.muhlenkamp.com.
With
operations worldwide, the major oil companies were able
to import enough gasoline (in place of crude oil) to keep
Americans supplied. Prices jumped and (for a while) we
used less gasoline, but usage is back up to normal and
prices are nearly back to where they were pre-Katrina.
For their efforts, executives of the major oil companies
received a political tongue-lashing from Congress, but
that’s probably in their job description.