Despite the unbelievable resilience of major equity indices, there have been some pretty major Bearish Developments.
My long-running Bearish Thesis has been that we will see upwards price pressure on the US Dollar, which in turn will put downwards pressure on mega-cap multinational corporations as well as commodities; specifically crude oil.
The implosion of the crude-oil bubble which found it's peak in the midst of George Bush's, Saudi Arabian terrorist event inspired 'War on Terrorism' will spread like a shock-wave through the malinvested energy patch. Many cost-extensive shale oil & deepwater drilling operations will soon find themselves bankrupt with many investors once prized junk grade 'high-yield' bonds worthless.
My long-running Bearish Thesis has been that we will see upwards price pressure on the US Dollar, which in turn will put downwards pressure on mega-cap multinational corporations as well as commodities; specifically crude oil.
The implosion of the crude-oil bubble which found it's peak in the midst of George Bush's, Saudi Arabian terrorist event inspired 'War on Terrorism' will spread like a shock-wave through the malinvested energy patch. Many cost-extensive shale oil & deepwater drilling operations will soon find themselves bankrupt with many investors once prized junk grade 'high-yield' bonds worthless.
Dollar Break-Out, Weak Treasuries, Weak Junk Bonds, Weak Oil: Equities Stubbornly Resilient
The destruction of all economically-sensitive commodity prices is no coincidence.
Indeed, as the data continues to confirm each week: The global economy is slowing.
Chinas Imports & Exports are collapsing.
Indeed, as the data continues to confirm each week: The global economy is slowing.
Chinas Imports & Exports are collapsing.
Like a ship riddled with canon-fire, the BDI continues it's epic descent into the fathomless depths of the red sea.
The Magic Ratio I discovered earlier in the year peaked July 2014, when the stock market theoretically should have topped out. Indeed, this ratio shows that despite the resilience of the stock market whether it be from TINA, PPT Manipulation, Asset Managers running around like decapitated chickens, it doesn't really matter. The US Dollar has been outperforming equities for a year and a half now. I expect this trend to not only continue but intensify immensely once the worlds largest asset-price bubble bursts.
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