Friday/ bearish calls

Well, well, well.  IMG_2336 smSo by the end of the second week in 2016, the oil price had crashed to below $30 a barrel, and the Dow Jones Industrial Average is 12.7% off its high of May 2015.   The 200-day moving average on the S&P 500 is now trending down, an ominous sign that things are moving in the wrong direction (and have been for a while).  And man!  are the opinions all over the map!  Some say the Fed should reverse its rate hike of December.  But no, says the Federal Reserve Bank Governor from New York : the four rate hikes foreseen in December for 2016 are absolutely all still on the table.  Micheal Pento argues on CNBC’s web site that A recession worse than 2008 is coming.   Worse than 2008? because the Fed is out of ammunition to fight another big recession (‘former Fed Chair Ben Bernanke took the overnight interbank lending rate down to zero percent from 5.25 percent and printed $3.7 trillion’).  We will just have to wait and see.


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