XJO - Bear Posts only (Factors which might cause the markets to fall), page-12537

Saudi Arabia is the wild card in this. Will they side with Israel (and therefore the US) or will they back their fellow Arab / Muslim peoples?

I personally do not think the ties with US are that close anymore and that means they will be helping their regional counterparts (maybe not the radical terrorist groups, but if their associated citizens are attacked then especially so). This also aligns with their new friends in the BRICS countries, and we can therefore expect further cuts in the supply of oil to those not associated with that group.

Expect Oil to start to rocket again, until this breaks the economies of the world. Check last time that the Oil price went over $110 a barrel (pre covid era).. Hmmmm 2008... I wonder if that had any additional affect on the economic outcome around this time... After then was the massive stimulus which as we all know creates a destructive speculative bubble and this kept oil prices high. Offsetting the cost of oil at the time, was the continued support of cheap Chinese goods. We won't have this effect this time around.

History repeating itself?

I notice that there has been a push in Bond Yields around the world. More dumping happening. This could mean escalation is just around the corner. At the same time the USD has surged, and the AUD has plummeted (against most other currencies - except against our friends in Kiwi land).

I assume the smart money knows something about what is going to happen to our economy which isn't going to be good to park money / investments here. Our major item of note is IO.. so watch that space