How much impact does energy cause on this index? As soon as it is removed from the formula the index takes a positive track. The fall in oil prices has been huge. It has reduced costs of products and put more money into the hands of consumers. There should be an uptick in the economy for every month energy costs have fallen.
The only people that actually like increases in energy costs is Wall Street investors. There is no else that treasures the increased costs of energy. The cost of energy is on the wrong side of the ledger. The less it costs the more the profit side of any business will increase.
What is really great about alternative energies such as solar and wind is that it is more of a standard. The expense is realized when the infrastructure is built. The cost of the energy coming off the alternatives is consistent. There is no fall in quantity available or a glut of supplies; the alternatives are built to supply a need. There aren't too many wells, too many or too few employees. Alternative fuels are consistent in their delivery of energy at a consistent cost. Once local businesses write their energy costs into their production prices or cost to consumer it won't change to astronomical costs that will put them out of business.
Utilities should not be troublesome because they have a profound impact on an economy. That is why utilities are regulated. But, they should not be the star performer in the portfolio. The businesses producing or selling consumer commodities should be the star investments.
March 13, 2015
By Bloomberg News
...Estimates in the Bloomberg survey (click here) ranged from a 0.2 percent decline to a 0.7 percent gain. Prices excluding food and energy were projected to rise 0.1
percent after falling 0.1 percent the month before, the survey median showed.
Compared with a year before, producer prices fell 0.6 percent, the first 12-month decrease since records began in 2009. The core index increased 1 percent in the 12 months ended February, after a 1.6 percent gain.
Eliminating food, energy and trade services, which some economists prefer because it strips out one of the most volatile components of PPI (Producers Price Index), costs were unchanged last month after falling 0.3 percent in January....
The only people that actually like increases in energy costs is Wall Street investors. There is no else that treasures the increased costs of energy. The cost of energy is on the wrong side of the ledger. The less it costs the more the profit side of any business will increase.
What is really great about alternative energies such as solar and wind is that it is more of a standard. The expense is realized when the infrastructure is built. The cost of the energy coming off the alternatives is consistent. There is no fall in quantity available or a glut of supplies; the alternatives are built to supply a need. There aren't too many wells, too many or too few employees. Alternative fuels are consistent in their delivery of energy at a consistent cost. Once local businesses write their energy costs into their production prices or cost to consumer it won't change to astronomical costs that will put them out of business.
Utilities should not be troublesome because they have a profound impact on an economy. That is why utilities are regulated. But, they should not be the star performer in the portfolio. The businesses producing or selling consumer commodities should be the star investments.
March 13, 2015
By Bloomberg News
...Estimates in the Bloomberg survey (click here) ranged from a 0.2 percent decline to a 0.7 percent gain. Prices excluding food and energy were projected to rise 0.1
percent after falling 0.1 percent the month before, the survey median showed.
Compared with a year before, producer prices fell 0.6 percent, the first 12-month decrease since records began in 2009. The core index increased 1 percent in the 12 months ended February, after a 1.6 percent gain.
Eliminating food, energy and trade services, which some economists prefer because it strips out one of the most volatile components of PPI (Producers Price Index), costs were unchanged last month after falling 0.3 percent in January....
