US Economy in Adverse Case of FED.?

The Financial Development Report 2012

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World Economic Forum ' Transparency for Inclusive Governance'

Alan Greenspan ' Fiscal Cliff is Painful '

Wednesday, February 22, 2012

Stock Sweetness and bitter pill



The Equity markets world over sprung after long long time, looking past European Crisis and China's slowdown and carrying the US growth prospects in both Hands. Markets like an efficient animal smell the growth and like a bad engineer spoil it with huge Margin in the downside and Upside. The swings are really breath taking and wild.


Unlike, in 70s to early this century commodities hardly tracked and coyed the equities. But, with the continuous Money injections and abetting by the US FED the co relation seems to be getting entrenched and creating trading pattern. The Equity-commodity unison seems to be obvious and reasonable and most importantly acting as proxies for various currencies like Canadian $, US $, Euro and lately developing world and special reference to Asian Currencies. The Cocktail tastes good and healthy now, and it seems the indicators have started showing divergences and likely to break sooner than ever. The Early indicator seems to be Gold..


Next question lies Who will loose and break the tempo and momentum...?


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