OILies GOLDies r going nuts because the markets believe that the central banGers are NOT doing their jobs in controlling prices via interest rates or more fancy name called monetary policies. The ONLY, yes, the ONLY way stop such astounding jump is to hike rate HIGH HIGH to choke off economic growth. I know this is beri counter intuitive but it is the ONLY way.
IF central banGers don't do OUTsize hike like 1% or 2% in 1 hike, this OILies GOLDies just won't let up.
The markets are ALREADY sending beri beri clear signals to the central banGers: IF u don't act and HIKE rates high high to STOP this frenzied rate of global growth, the markets WILL do it themselves by pushing UP all the materials needed for growth. The main problem is that growth is just too high for supplies to catch up. The ultimatum has been thrown into the banGers' face, will they take up the challenge? Answers coming yr way in July when Mr. Tricky set rates! Hang on to your hats!!
Monday, June 9, 2008
Waking up 2 INFALTION?
Over this past week, we have both central banGers : Mr. Tricky + Benny sounding the alarm on INFLATION and runaway inflation expectation! WELCOME to the REAL world. for god's sake, I have been saying so for over the last 1 or 2 years!! Your ineptness make me so SICK!
We still have to see if they r talking down the inflation expectation or they will ACT! OILies GOLDies will hold or go higher to dare them to hike. I will be watching very closely as to what these SICK banGers will DO not say! because it will affect my view on looney Aussies.
IF they REALLY act on hiking and indicate MORE hikes on the way, then get the hell out of all assets classes n hold CASH! for the time being please UP your CASH position. I have been saying for so long that the market wants higher rates. HIGHER rate means lower present value of future cash flow, ALL equities should correct DOWNwards. I will hold my view n wait for the SICKapore market to go DOWN to 2,000!!!
We still have to see if they r talking down the inflation expectation or they will ACT! OILies GOLDies will hold or go higher to dare them to hike. I will be watching very closely as to what these SICK banGers will DO not say! because it will affect my view on looney Aussies.
IF they REALLY act on hiking and indicate MORE hikes on the way, then get the hell out of all assets classes n hold CASH! for the time being please UP your CASH position. I have been saying for so long that the market wants higher rates. HIGHER rate means lower present value of future cash flow, ALL equities should correct DOWNwards. I will hold my view n wait for the SICKapore market to go DOWN to 2,000!!!
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