Oil Price Collapse: Just Speculation Or Massive Recession Ahead?

Daily Chart January 7th

1/7/2014 – An up day with the Dow Jones up 213 points (+1.23%) and the Nasdaq up 58 points (+1.26%).

This is an incredibly important question that just about impacts everything. Are oil prices down so much because…..

Oversupply, speculation, economic warfare against Russia & the US Shale Industry, etc….. -OR-
The entire worldwide economy is coming to a screeching halt.

Billionaire hedge fund manager Jeff Gundlach is asking the same thing.

Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly — terrifying.

For our purposes, that would mean the following. If oil prices are collapsing due to economic reasons as opposed to point “A”, then the stock market is just about to embark on a massive leg down. As you very well know, at today’s prices the stock market is pricing in strong economic growth, some would even claim that its valuation levels suggest an “economic miracle”. If that is not the case, as oil suggests, a huge down leg in equities might be just around the corner.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 7th, 2015 InvestWithAlex.com

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