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Peter, why do you think that when crude pulls back, it will take the rest of the
market with it ?

Asked by Bobby K 1 month ago - 4 answers - 33 views
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I don't mean to stutter, but it is difficult difficult to type in this box box

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Bobby, I think the eventual collapse of crude will be a major part of the
deflationary spiral the world economy will experience, Bobby. The drop in crude
I anticipate isn't so much a trigger as a major factor in the waterfall effect.
What we've seen in recent years is inflation in the things we need, deflation in
the things we want, and dollar devaluation - precipitated by the massive
injection of liquidity of easy credit policies. That precipitous drop of the
dollar exacerbated this inflation in needs, deflation in wants effect.
Eventually the dollar will spike, and this will also drive commodity prices
lower. Higher dollar, lower everything else.

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I would think that even a short term pullback would boost everyone's margins
outside of oil.

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Energy stocks will get slashed. Energy is one of the top performing sectors and
even though low oil is good for the consumer, it will hurt investor psychology.

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