The cyclical/resource trade is a play on Emerging Markets which he just monkey hammered from a demand perspective. In other words, epic outflows from Emerging Markets flowed into resource cyclicals, whose marginal customer IS Emerging Markets. You can't make this shit up. This guy is a total fucking dunce, and the people who believe in him are somehow dumber...
Supply Side Fucktard-o-Nomics visualized...
Take capital away from the marginal customer to invest it in more supply...
Emerging Markets versus Energy stocks:
"But what about imagined realities?"
EM Currency and Oil
These are the stocks and sectors holding up the entire market, based upon 13-week price outperformance...
But first, the last time the "dash for trash" High Beta / Low Beta ratio peaked and rolled over, the market tanked...
This crash history can clearly be seen in steel stocks, a "leading" sector right now:
Oil exploration & production:
Oil services
Regional banks
Marine shipping
Mining
Coal
"Good news, we're going straight back to the 1950s, when everything was awesome"
