This Chart Says It All

So what happens when the largest central bank in the world drops rates to zero and prints trillions of dollars…?Stop me if you’ve heard this one.

Well…other than making the top 1% of the top 1% even richer… It has dropped the price of oil from $110 to $50 a barrel.

Thank you Mr. Greenspan, Mr. Bernanke and Mrs. Yellen (The Dream Team).

One of the side effects of making money so cheap to borrow is that the energy industry borrowed half a trillion dollars.

And what did they do with it?

Put it to work and created new drilling technologies. Technologies that did not come out of Silicon Valley but out of the Marcellus, Bakken, Eagle Ford and Permian basins.

Pretty amazing that the biggest technology breakthroughs did not come from 26-year hoodie wearing kids in Palo Alto but from rough necks working hard in the dangerous world of energy extraction.

And with so many people forced into the stock market because bond yields went away there is one chart that’s giving us the clearest next steps.

What this chart does going forward will sway the markets next move…not to mention determining whether the energy sector has stabilized after its 40% fall.

This chart says it all. Click here.

You can get access to this weekend’s podcast right here.


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