Declines industrial metals and oil show the deflationary downtrend in stock markets and economies
Neal Sunders
Mar. 18, 2007

The oil is takes two step backward and one step forward. The industrial metals and alloys like copper, steel and others are slowly retreating from a parabolic top.

The supply from scrap metals is going to force a meltdown in industrial metal prices in the next several months. The oil demand is slowing while the supply has increased many folds. It is true that no new oil fields have been discovered. But the efficiency and productivity in creating higher output has created a glut in the oil and natural gas market.

Declines industrial metals and oil show the deflationary downtrend in stock markets. In the past when these two moved concurrently, so did the economy. As a matter of fact the analytics and quantitative models manifest a correlation between oil and metals crash and stock market massive declines.

If the economy ends up in a deep recession or depression, the oil and metals will lose 70 to 80% of its value. But the metals and energy market always sense the economy far better than anything else. Consequently, declines industrial metals and oil show the deflationary downtrend in stock markets and economies.

Declines industrial metals and oil show the deflationary downtrend in stock markets and economies
Neal Sunders
The oil is takes two step backward and one step forward. The industrial metals and alloys like copper, steel and others are slowly retreating from a parabolic top.
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