Deflation expectations continue rising, as prices linked to inflation expectations continue crashing. (See: Russia down another -1.9% this morning to -38.5% year-to-date).
Editor's note: This is an excerpt from Hedgeye CEO Keith McCullough's morning research. For more info on how you can subscribe to our services click here.
The domino risk of deflation from Oil to Energy Stocks and Bonds doesn’t stop there – Policies to Inflate have dominated headlines for half a decade.
The Oil crash clocked in at -42% (from June!) then bounced right off that $62.21 oversold level we gave you yesterday. This dynamic and non-linear situation continues with a refreshed risk range of $61.27-68.02/barrel.
Energy stock/bond bulls need to bounce well beyond the top-end of that range to get back to breakeven.
It’s different this time?