The Bubble Burst You Didn’t See Coming…”In the next great crash, everything will get swept up in the onslaught”

Monday, September 12, 2016
By Paul Martin

by Harry Dent
WolfStreet.com
September 12, 2016

Bubbles are not black swan events. They’re highly predictable.

In the next great crash, everything will get swept up in the onslaught – with virtually no exceptions. And that goes too for what we eat!

The 30-Year Commodity Cycle peaked in mid-2008 and has been the first major bubble to crash and burn. The CRB (Commodity) Index has been down as low as 67%, with the potential for 74% or lower in the next few years.

Among individual commodities, oil has been down as much as 82% in early 2016. Iron ore and steel have been down 76% with a potential for 88%.

When my Commodity Cycle turns down, these are all likely to follow. And the commodity bubble proves that when bubbles burst, they don’t just correct in a gentlemanly manner – they crash and burn so that the downside is more like 80%, not 50% as in more normal, long-term corrections.

That said… The biggest surprise in the commodity crash to me has been that even agricultural commodities like corn have crashed. It’s down 62% with a potential for 70%-plus. Look at the chart on corn:

The Rest…HERE

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