ALBERT EDWARDS: 75% CRASH In STOCKS COMING….MEAGA MELTDOWN
If I am right and we have just seen a cyclical bull market within a secular bear market, then the next recession will spell real trouble for investors ill-prepared for equity valuations to fall to new lows. To bottom on a Shiller PE of 7x would see the S&P falling to around 550. I will repeat that: If I am right, the S&P would fall to 550, a 75% decline from the recent 2100 peak.
Oil could crash to $10 a barrel, warn investment bank bears
Oil prices have crashed to below $30-a-barrel amid warnings the rout could reach as low as $10 and bring down petrol prices to levels last seen in 2009.
The warnings came as Opec – the cartel that controls a third of the world’s supply – said it would not cede to requests from some of its members to hold an emergency meeting.
With the next regular meeting scheduled for June, Nigeria’s oil minister said at least two members had called for an extraordinary gathering to address the price rout. But hopes were quickly dashed after the United Arab Emirates dismissed the prospect.
Energy minister Suhail bin Mohammed al-Mazroui said Opec’s decision to maintain production and crowd out rivals was still bearing dividend, hinting that it would take another 18 months for prices to start picking up.
http://www.telegraph.co.uk/finance/oilprices/12094394/Oil-price-could-fall-to-10-a-barrel-warn-investment-bank-bears.html
inShare
Update 1-13: BALTIC DRY –8 TO 394 RECORD LOW
Update 1-12: BALTIC DRY -13 TO 402 RECORD LOW
Update 1-11: BALTIC DRY -14 TO 415 RECORD LOW
Update 1-08: BALTIC DRY -16 TO 429 RECORD LOW
Update 1-07: BALTIC DRY -22 TO 445 RECORD LOW
Update 1-06: BALTIC DRY -1 TO 467 RECORD LOW
Update 1-05: BALTIC DRY -5 TO 468 RECORD LOW
Update 12-16: BALTIC DRY -13 TO 471 RECORD LOW
Update 12-15: BALTIC DRY -24 TO 484 RECORD LOW
* Baltic Dry has been tanking
Record low
http://www.dryships.com/pages/report.php
http://www.bloomberg.com/quote/BDIY:IND
* Crude is plummeting.
Currently WTI hovering at $32-33 (lower than August chaos)
http://www.livecharts.co.uk/MarketCharts/crude.php
And with crude, commodity prices in general are falling
The CRB index is currently back hitting 167 and lowest in over a decade (was 185 during summer chaos)
http://www.bloomberg.com/quote/CRY:IND
Junk Bonds are at lows not seen since 2009.
http://finance.yahoo.com/echarts?s=HYG%20Interactive#{“range”:”10y”,”allowChartStacking”:true}
I’m sure there are other indicators and it is still too early to say, but perhaps the Titanic, after a temporary reprieve, will start sinking fast.
“Nothing Is Moving,” Baltic Dry Crashes As Insiders Warn “Commerce Has Come To A Halt”
The continued collapse of The Baltic Dry Index remains ignored by most – besides we still have Netflix, right? But, as Dollar Vigilante’s Jeff Berwick details, it appears the worldwide ‘real’ economy has ground to a halt!!
Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss.
This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty.
http://www.zerohedge.com/news/2016-01-11/nothing-moving-baltic-dry-crashes-insiders-warn-commerce-has-come-halt
: When the international financial press presents their standard
: explanation for the panic decline in the Chinese stock
: market, most want to tamp down the acute apprehension that
: the long awaited global depression is now at hand. Well,
: the International Business Times in their account on the
: China Stock Markets, makes a very insightful appraisal.
: Read the entire article on the "Negotium" archives
: http://www.batr.org/negotium/011316.html
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