$57 by Dec. 31, exactly as Armstrong had predicted...
Massive global deflationary collapse underway!We are heading back to retest the $35 levels of the 2008 deflationary episode, except
this time QE can't come to the rescue!
Even
China can't stimulate this time.
The fat lady has sung. We are in the 9th inning and the game is over. Massive collapse dead ahead. Europe and Japan will collapse in 2015, and the USA will top out in October then collapse into 2016. We will be in global deflationary chaos by 2017 or so.
http://armstrongeconomics.com/2014/12/29/crude-oil-in-the-grips-of-massive-deflationary-cycle/| http://kwout.com/cutout/h/ck/7q/s2u_bor.jpg | Our original forecast for oil back in 1997 was that it should rise to reach the $100 level at least by 2007. We reached $99.29 in 2007 and then 2008 was a wild trading year reaching $147.27 intraday crashing back to $35.13 and closing the year at $44.60. Oil made the intraday low in 2009 and then rallied back into 2011 to score the highest yearly closing at $98.83. We can see from the chart above back to 1902, the rally from the 1998 low was a perfect 13 year event.
We warned that a year-end closing BELOW $57 will signal a sharp decline should continue. It certainly appears that will be accomplished and then we will look for a retest of the $35-$31 level. We see a Panic Cycle ahead on our yearly models as well.
Overall, this is part of the meltdown for BIG BANG. There is not going to be much left standing as every field of investment and economy should be hit rather hard. We will be looking at putting out a special report on Energy for this is part of the massive global deflationary cycle underway. |
And another of his bearish predictions is hitting exactly to the day!
http://armstrongeconomics.com/2014/12/30/yearly-bearish-in-euro-121-56-woe-is-europe/Yearly Bearish in Euro 121.56 Woe is Europe
The fear of a resurgence of the Euro Crisis has weighed on the common currency driving it down sharply trading at 1.2156 at 6:05 EST. The euro fell to $ 1.2122 intraday, marking the lowest level in two and a half years. However, our Yearly Bearish Reversal is 1.2156 precisely where we are trading at the time of this update. A [yearly] closing beneath this area will bring all our forecasts into being.
