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Gary Shilling

Ready for $20 Oil?

The game of chicken between OPEC and other oil producers is just beginning, and it could drive oil prices as low as $20 a barrel.
Playing the long game.

Playing the long game.

Photographer: Bilal Qabalan/AFP/Getty Images

When the U.S. Federal Reserve ended its quantitative-easing program in October, it also ended the primary driver of U.S. stocks during the past six years. So long as the central bank kept flooding the markets with money, investors had little reason to worry about a broader economy limping along at 2 percent real growth. 

Now investors face more volatile markets and securities that no longer move in lock-step. At the same time, investors must cope with slower growth in China, minuscule growth in the euro area and negative growth in Japan.