Mike Maharrey delves into the complexities of the current economic landscape including that of China as a member of BRICS, Federal Reserve policies, and stagflation.
Songpol's confusion notwithstanding, he's wise to allocate more investment to commodities - especially gold. Higher interest rates increase the likelihood that the stock market bubble will begin to deflate.
Active risk management along the way to speculating in this bubble (it simply should not be called investing) is required. As the bubble in confidence in policy-making (both fiscal by government, and monetary by central banks) continues, we note the absurdity here.
So, there you have it: the Fed decided to give less intensity to its fight against inflation in order to make the Treasury’s job a lot easier right when everyone can see the Fed needs to fight harder.
We're in a bit of a correction. If there's no question, in my mind, at least the major trend is up. The market's working in stages on the downside temporarily; you've got a higher high, lower low pattern – that is not a trend.
