Seeking Alpha publishes an interesting article on 3 possible ways the next wave of crisis will play out.
In brief they analyze 3 scenario :
Deflationary: dollar and bonds rise, stocks fall.
Inflationary: dollar and bonds continue to fall, stocks continue to rise. In one word: more of what we have already, and that's precisely why, in my opinion, it's the least probable: at present, the real economy and financial markets are going in the different directions.
Hyperinflationary: all paper instruments fall destroying the economy as we know.
A simple analysis of some recent trends gives a higher chances for the 1st scenario. It's my opinion as well.
Thursday, November 12, 2009
3 possible scenario for the next wave of crisis
Labels:
Deflation,
Hyperinflation,
Inflation,
Market Sentiment,
Market Trend,
USD
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