Could lead to further weakness in oil prices, recession and a serious equity bear market, strategists warn
2/5/16 – (CNBC) “The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday.
Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016, that oil prices were likely bottoming, potentially providing some light at the end of the tunnel, but that the world economy will grow by only 2.7 percent in 2016.
But, Mark Grant of Hilltop Securities believes oil is not ready to bottom, “The numbers in China are inflated, meaning untrue…As big a concern is oil. I think oil is headed down.”