If the Economy is Strong, Why Are These Assets In Full Blown Bear Markets?

Wednesday, November 11, 2015
By Paul Martin

By: Graham Summers
Wednesday, 11 November 2015

We are often told that the global economy is strong… that fears of a contraction are overblown… that China is still an engine for economic growth… and that the US has detached from the turbulence in the Emerging Market space.

If the above claims are true, then economically sensitive assets should be rallying as global demand propels them to higher prices.

But they’re not.

In fact, they ENDED their bull markets and have erased several DECADES’ worth of gains.

Consider Coal.

In the US, Coal has become a political hot button. Consequently it is very easy to forget just how important the commodity is to global energy demand. Coal accounts for 40% of global electrical generation. It might be the single most economically sensitive commodity on the planet.

With that in mind, consider that Coal ENDED a multi-decade bull market back in 2012. In fact, not only did the bull market end… but Coal has erased ALL of the bull market’s gains (the green line represents the pre-bull market low) and fallen BELOW its pre-bull market lows.

The Rest…HERE

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