“However bad things were in the oil patch, the year 2015 was worse for the coal miners. What is happening to the market for coal is an indication of the kind of “creative destruction” occurring throughout the global economy. As of 2011, more than one-half of U.S. coal production was attributable to the top four coal producers. Peabody Energy Corporation (BTU), Arch Coal Inc., Alpha Natural Resources, and Cloud Peak Energy (CLD) together supplied 575 million tons, or 52 percent of total U.S. coal production. Today, Alpha Natural Resources is bankrupt and the three others saw their stocks drop by 78 to 94 percent during 2015.” ~ Solari Report 2015 Annual Financial Markets Round Up
As discussed in our Annual Wrap Up, the economic ground is shifting under our feet. This has implications for global valuations – indeed watching global valuations offers important insights on the transition underway. The challenge this year, as bulls and bears collide, is to discern volatility and events of economic warfare from deeper trends.In our Annual Equity Overview this Thursday, I will review the charts for 2015 performance and global valuations in the equity markets. I will also address specific questions:
- The outlook for the US dollar and the impact of dollar performance on the US stock market;
- A serious deflationary scenario – could it happen and what would the implications be for your strategy;
- Solari Report scenarios for planning your allocations in 2016; and
- Issues and options to consider for your portfolio and investment strategy.
Catherine Austin Fitts