Gasoline, adjusted for inflation, remains relatively cheap. A gallon still costs less than the same amount of Coca-Cola.
That, however, does not mute the impact of rising fuel prices. If gas prices were to stay high for too long, it will negatively impact consumer spending, likely hitting retailers first. Recall we mentioned some time last month that we believed a top in Oil prices was nearing, with the peak coming no later than mid-Summe.
What matters most, relative to the markets, are context — are prices rising or falling? — and future discount mechanism — how much are these prices already bakedinto the cake . . .