Bizarro Market Is Killing the Grizzled Veteran

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Lots of things make no sense to people and it is killing them, particularly those who have been in this business for years and years.

First is oil. We don't expect any commodity to double and not matter, either to itself -- the use of oil not being cut back at all -- or to the economy.

The idea that we are at $90 and no new oil has come out of the ground to meet the demand is mind-boggling, particularly among those who remember the spigot being turned on and the price going to $10 not that long ago.

That means the international drillers, the ones with all of the leverage to worldwide deep oil in far away places,not the ones with North American gas exposure, make out like bandits. They had been cyclical businesses until now.

Second, we can't believe that all of these technologies like solar and ethanol, which were totally prohibitive and needed subsidies, are suddenly cheaper than oil. So those stocks do nothing but go up and up and up.

Third, we have become convinced that infra plays are going to go up and then go down in a crushing style. But because of the vast new need for power, they are no longer cyclical.