Lower oil demand shows world economies have started contracting – stock markets vulnerable
Sam Adelton
Nov. 10, 2006

The demand for crude oil is steadily going down. According to some media reports, The energy adviser to 26 nations reduced its projection for world oil demand this year by 80,000 barrels a day. Demand will expand 1.1 percent to 84.5 million barrels a day, down from an earlier forecast of 1.2 percent, the IEA said in a monthly report. Demand in China is dropping dramatically. That has created a glut in the market.

The world economies have started contracting. The biggest surprise is coming from China. India with its heavy debt burden will follow soon.

The worldwide stock markets are ready for a massive correction. Most likely it has topped out and entered a multi-decade bear market. The apparent stagflation has changed into slow but steady deflation.

Lower oil demand shows world economies have started contracting – stock markets vulnerable
Sam Adelton
The worldwide stock markets are ready for a massive correction. Most likely it has topped out and entered a multi-decade bear market. The apparent stagflation has changed into slow but steady deflation.
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3M deal just the start – as hedge funds and conglomerates download their Pharma holdings buying opportunity starts
Marla Guthrie
3M agreed to sell its global branded pharmaceuticals business to multiple buyers for a total of $2.1 billion. This is just the start.
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Last cheer for Tech stocks as Cisco comes out bullish on revenue from high-speed Internet and video downloads
Joe Weinman
The net effect is very serious. All on a sudden the tech stocks will find nothing more left sell. Consumers all on a sudden will refuse to borrow any further after being bored with same old stuff for the last5 ten years.
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Worldwide debt driven stagflation - U.K. economy grew at its fastest pace in two years last quarter as consumers racked up debt
Fred Day
Policy makers led by Governor Mervyn King lifted the repurchase rate a quarter-point to 5 percent in UK to control the infation from borrowed money.
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U.S. trade deficit narrowed to $64.3 billion on lower oil price and higher exports – bullish for dollar and bearish for bonds and gold
Sam Adelton
The dollar can stabilize and then move up. Gold will continue to drift lower slowly. Stocks will now have the hard time.
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Gold had its best days – the fiscally responsible US Senate and Congress will bring the correction
Alan Hersey
The market internals, technical patterns and analytics was showing deep trouble in the gold, oil and stock markets. Now the fundamentals are also in place.
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Landslide win by Democrats will bring stock market in line with internals of the economy – 40% correction?
Marla Guthrie
The disconnect is so deep that the stock market can correct as much as 40% over the next two years.
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