Market Complacency About To Be Brutally Shattered

Despite major global oil supply disruptions nearing half a year, equity markets are up and oil prices are still surprisingly tame. Contrary to institutional guidance from the likes of the IEA, the data points I am watching suggest that we are primed for a dramatic oil price spike starting in August. Stock markets will trade in inverse correlation during the oil price spike, and then they could decline further once a severe demand destruction event sets in. My investment plan is to raise cash by selling oil stocks incrementally on the way up, then use the cash to incrementally buy beaten down stocks as well as gold assets as they trade in inverse correlation to oil.

In the fifth month of what may be the greatest global oil supply disruption the world has seen, markets (SPY) are up for the year. The WTI oil price is still trading