We continue to think that the current crisis lacks a pedigree, and industry leader Jamie Dimon (CEO of JP Morgan) would seem to concur, given that in the wake of stock declines he purchased shares of his company.
Signs of Slowing Inside and Outside the US
It seemed like the initial threat to western markets was from China, but that threat has expanded with a lengthening pattern of slack US data.
The US Economy is Slowly Progressing
Just as US scheduled data has continued to be mixed, the Fed had added confusion regarding their intentions on monetary policy. The general consensus is that the US economy is slowly progressing.
Fundamental Track in Favor of the Bear Camp
Just when it appeared that sentiment had reached a trough, the crude oil market dragged commodities down even further.
Commodity Markets Seeing Bearish Factors
Commodity markets are seeing nearly a perfect storm of bearish factors during the first 2 weeks of 2016.
New Year, Return to Recession?
As 2016 begins, the commodity bears are getting close to a “perfect storm” from all directions.
The Commodity Markets Going Into 2016…
The 2015 market wrap-up suggests that broad-based deflationary sentiment has resulted from a “perfect storm” during the second half of the year.
The Deflationary Selling Binge in Commodities Has Continued with a Vengeance
The deflationary selling binge in commodities has continued with a vengeance, with sagging crude oil prices leading the way.
Additional Commodity Pressure in Anticipation of an Interest Rate Hike
In looking ahead to the coming week, we expect additional commodity pressure going into the FOMC meeting off of a stronger dollar in anticipation of an interest rate hike.
Suspect a Bottoming in the World Economy
Economic prospects have improved over the last two weeks, as crude oil prices have shown signs of declining further, the Fed have minimally downplayed the prospect of a near-term rate hike, and perhaps most importantly, the ECB did “something” to help facilitate growth in the euro zone.