OIL PRICES SAY: 100% CHANCE OF A NEW RECESSION
Courtesy of The Pragmatic Capitalist
No, that headline is not a typo. This interesting fact comes to us courtesy of The Global Macro Investor:
“Oil prices are always a precursor to recessions. We hit the magic 100% YoY rise in November 2009 and went on to hit the third highest YoY% rise in the history of oil markets…
“The magic 100% level in the YoY change in oil gives us a 100% chance of a recession in the succeeding twelve months. This indicator suggests that ISM will fall to 40, or even 35, in the coming months before recovering…”
Source: GMI
