Deflationary Dominoes

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.

Deflationary Dominoes  - 68

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?

Deflationary Dominoes  - boom