How to End a Correction with a Recession

Is the correction over? We've been looking for a bottom in oil, and something to shake the Fed out of its "later this year" mania. The credit distress and CAPEX drought in the energy sector has delivered both -- supply destruction is going to lead to higher oil prices, but the tightening of financial conditions associated it with is has triggered a recessionary environment which will stay the Fed's hand for many months. A Fed on hold means no threat from dollar-strength, and recovery in commodities overall. US stocks could make a seven-year winning streak, and emerging markets would be the biggest beneficiaries -- even China .