Mirage In The Markets

There are 2 opposing sentiments that need to play out in world stock markets in general. The bulls believe that the world is returning to ‘normal’, while the bears believe that the world can still come to an end. At the moment, the bulls have an upper hand, but I have certain behavioural indicators that suggest that the bears may have a point. You can’t increase global Money Supply by an estimated 25 per cent, take the Fiscal Deficit to 12-15 per cent in major countries, and not increase inflationary expectations. Ignore this at your own peril….

This article was originally published on July 25, 2009.