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Page added on April 8, 2016
Psychological Markers for the Price of Oil
analyst at Jefferies, discusses the outlook for oil and factors moving the price. He speaks with Guy Johnson and Hans Nichols on Bloomberg Television’s “On The Move.”
4 Comments on "Psychological Markers for the Price of Oil"
shortonoil on Fri, 8th Apr 2016 7:43 am
After Yellen’s “everything is beautiful” comments yesterday the market jumped, and oil with it. The psychologically is follow the FED no matter what, and it is all based on a Central Bank being able to create currency out of thin air that has absolutely no intrinsic value.
This is not going to end well!
makati1 on Fri, 8th Apr 2016 8:06 am
So true, Short. So true.
Davy on Fri, 8th Apr 2016 12:45 pm
“For Albert Edwards, This Is The “One Failsafe Indicator” Of An Inevitable Recession”
http://www.zerohedge.com/news/2016-04-08/albert-edwards-one-failsafe-indicator-inevitable-recession
“Despite risk assets enjoying a few weeks in the sun our failsafe recession indicator has stopped flashing amber and turned to red. Newly released US whole economy profits data show a gut wrenching slump. Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided – even more so than the ridiculously overvalued equity market – is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default.”
“I suppose now the S&P has recovered we are about to go through another turn on the monetary/market merry-go-round. Ignore this noise. Recent whole economy profits data show that while the Fed plays its games, the economic cycle is withering and writhing from within. For historically, when whole economy profits fall this deeply, recession is virtually inevitable as business spending slumps. And if I had to pick one asset class to avoid it would be US corporate bonds, for which sky high default rates will shock investors.”
“My own observation has led me to the conclusion that when whole economy profits begin to fall sharply, this is usually followed shortly after by the overall economy tipping over into recession, driven by the volatile business investment cycle.”
“Historically all recessions are effectively caused by slumps in business investment driven by a profits downturn”
https://www.youtube.com/watch?v=LsD6AL3HJtM
onlooker on Sat, 9th Apr 2016 12:12 am
That is a truly salient point by Short. The modern economies are living a fiction and at some point as contraction sets in that fiction will not be able to sustain itself.