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They say oil will touch $45 before a bounce
This oil crash is going to have profound consequences. Its surprising the stock market is holding up as well as it has. I’d think that this oil crash could cut mining costs upwards of 50%.
Yeah definitely profound consequences. It will probably push the economy into overdrive and it may rescue Europe. Yes a few hundred fracking companies will go out of business but I doubt that is going to do much real damage.
Oil is the lifeblood of any economy. When it’s cheap economies run better. The 1980’s and 90’s are a perfect example. When energy spikes economies collapse. 2001 and 2008 are prime examples.
If that is the case of putting the economy in overdrive then the Fed may raise rates higher and sooner than expected.
Any idea why Gold isn’t getting crushed with all this big time US Dollar strength lately?.
Gold bottomed in Nov. for two reasons. It was in the timing band for an intermediate cycle low and sentiment had reached bearish extremes. I think gold is now anticipating an intermediate top in the dollar soon. The real test will come when the dollar makes another leg up later this year. That’s the point were gold will have to hang on or it will make a lower low and possibly a final 8 year cycle low.
You got the bounce Gary.