Tuesday, May 29, 2012

Commodity Index Re-enters Bear Market For First Time Since 2008 Collapse

In the last few weeks the CRB Index has fallen back into bear market territory for the first time since the 2008 global collapse.  A bear market is defined by a correction of 20% or more.  This is not a typical 10-20% correction to a bull market.  This decline has been underway for almost a year and a half.    I expect financial markets will try to put in a bottom within a few weeks and speculators will try to get some sort of low volume summer rally or stabilization.  But, with money already repatriated from Europe and emerging markets, without a new round of liquidity programs in the U.S. for financial speculators, markets should continue their downward trend later this year.  With no end in site to bankster-controlled austerity measures and the implosion of China's economy, we are witnessing a collapse in money supplies for the majority of economic participants in parts of Europe, the U.S. and Asia.  The bubble still hasn't popped for those benefiting from Social Darwinism and their policies of trickle down economics but it's just a matter of time.

Chart courtesy of the excellent StockCharts.com - Click To See A Larger View
posted by TimingLogic at 12:23 PM