Bloomberg market/Billionaire Cohen Says Bear Market Coming Within Two Years & How Will Oil's Freefall End? Here's Where You Can Look for Clues

Bloomberg market/Billionaire Cohen Says Bear Market Coming Within Two Years

By Saijel Kishan
‎November‎ ‎14‎, 2018

A bear market is coming in the next two years, a hedge fund manager Steve Cohen said. He said we are now in the tail of the economic cycle, which indicates further declining. Capital market will not give satisfactory return, according to him. He mentioned various subjects in the talk show, including describing Alibaba as a winner and cryptocurrencies as dicey.

 

It seems economic situation is not glowing. Many articles say about decreasing trends in each market. Energy market shows bearish, equity market, property(houses)... all these market expertise talks about downwards expectation about the future. We need to prepare freezing winter with US-China trade war, increased uncertainty from radical politicians, and broken bubbles from quantitative easing. The reserve rate will increase in Korea as the gap between Korea and US interest becomes larger. Some says it's natural economic cycle to face this down term so let's face it. It's now time to think how to survive in the recession.

 

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Bloomberg market/ How Will Oil's Freefall End? Here's Where You Can Look for Clues
By Dan Murtaugh, Serene Cheong, Ann Koh, and Sharon Cho

‎November‎ ‎14‎, ‎2018‎

There are points to watch downwards oil price trends.
1) Supply: OPEC keeps effort to cut their oil production but we know the history of collapsing the tie. In the US, shale drilling continues going smooth.
2) Strong dollar: Oil trades are through the U.S dollar. Now dollar is strong and expected to be even more stronger when fed. increase the interest rate.
3) Demand: after summer season, demand for oil tends to decline. Return from gasoline production will decrease either. On the other hand, as winter is coming, diesel production may give more profit while Chinese industrial activities rely on diesel.
4) Refiners - plastic: Petrochemical industry does not glow as US-China trade war is still unresolved. Asian manufacturers face uncertainty in their revenue.
6) Technology: the RSI stands the lowest level in three years.
5) Hedge Funds: the funds cut their position on crude oil and they bet for selling.