Earth to stock market

A 24% decrease in the price of oil in one day, back to where it was a half-century ago, is bullish and not a reason for the stock market to lose 2013.76 points.

3 Responses to “Earth to stock market”

  1. feeblemind Says:

    Agreed. This is a buying opportunity.

  2. feeblemind Says:

    Financial and Disease Panics: Black Swans?

    From the piece:

    “Another feature of the transition from boom to contraction includes the action in industrial commodities: up in the boom and down in the bust. Base metals set their recent high on January 16th and have declined by 12 percent. Crude oil became overbought in setting the high at $65.65 on January 8th and has crashed 50 percent to $32. Our February 13th publication noted our targets of $37 and $26.

    These plunges are marking the transition to contraction and going the other way, gold’s price reverses to increasing in the post-bubble world. From the low of $1167 in 2018, gold has rallied 46 percent to $1702. Also Treasury Bills decline. For the three-month the high yield was 2.49% a year ago in March. Now it is at 0.29%.

    It’s been called the “Everything Bubble” and our work notes that it has had much in common with the 1929 and 1873 examples. Clearly this has been the “Everything Correction,” the importance of which is confirmed by an observation from the October 4, 1873 edition of The Economist: “The panic may be over, but the results of the panic are not over.” That post-bubble contraction completed in 1895.”

  3. feeblemind Says:

    Liquidity Getting Worse By The Day: Fed Injects Record $132 Billion With Overnight Repo

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