XJO - Bear Posts only (Factors which might cause the markets to fall), page-15176

The problem with that is how much has been priced in. How much growth is in the cards at this late stage in the economic cycle and with so much debt dependent growth already expended. We know the cure for high prices is high prices and with the Chinese deflationary force and other economic slowdowns, regulatory burden, the natural inflation of an electrified transition and the long term effects of technology on capping inflation might prevent a second major inflationary spike. I think a slow grind down is possible once the market realises that the cuts in question might be relatively small, with perhaps only two on the cards this year. Stagflation followed by a medium term cycle of deflation perhaps?