I just got back from Davidson, NC — on a long sojourn from Cary to Charlotte and I’m exhausted. It appears futures are soft again and with it commodities. If we continue getting routed like this — the market will begin to consider it pricing in recession or slowing economic output. If that occurs and nothing new out of Russia, there is a chance we could see oil get absolutely routed alongside all other commodities, similar to what we saw in 2008.
This will not end neatly, however. And before this deflations cycle does end, if that’s what’s about to happen, people will begin to lose their jobs en masse. Rates will collapse and by summer the Fed will once again be out of touch with reality — tightening into a hard economic collapse.
This is all setting up wonderfully for a Fall crash.