STAGFLATION SCARE

While talk of stagflation, high inflation and high unemployment, is suddenly pervasive after last week’s lousy jobs report and rising oil prices, I remain skeptical. Oil futures for 3/27 are trading at $68/bbl. Last month, 3/27 contracts were trading at $62/bbl. Investors aren’t of the view this recent spike in the spot prices is going to last. Moreover, a quiescent Iran should result in reduced volatility and lower oil prices.