May 28, 2011, Bob Brinker Views on Rising Oil Prices and Inflation

Posted May 28, 2011....Bob Brinker has always said that rising oil prices do not cause inflation because it  acts as a tax on people.

RISING OIL PRICES DON'T CAUSE INFLATION.....Moneytalk, November 21, 2010,  Bob Brinker said: "Energy is way up in the past year. Energy, commodities up about 10%. Gasoline is up a big number. Fuel oil is up double-digit in the last year. But of course, rising energy prices alone don't produce inflation because they are weighted into the overall index......We have always maintained that rising oil prices act as a tax on consumers, and are therefore counter-inflationary as they have a negative impact on consumer discretionary spending power."

For over a decade, Bob Brinker's Marketimer off-the-books "Individual Issues" list has contained only two stocks (MSFT and VOD).    However in  May, 2009, Brinker added Suncor (SU),  a Canadian oil company.  He currently maintains it as a hold.  His explanation for adding SU:

Marketimer May 2009 issue, Bob Brinker said: "This month we have added Suncor to our coverage. Suncor is a leading Canadian oil sands producer with vast reserves in the Athbasca Tar Sands of Alberta.....We view Suncor as an excellent way to protect portfolios against the rising oil prices in the future. As with all individual stock issues, holdings should not exceeed four percent of equities."