What they don't tell you in corporate media.

Tuesday 4 November 2014

Is the next "Stimulus" on the way?

It would seem so, if you see the continuing oil price collapse due to slowing demand and US shale oil boom. Oil prices have been falling for almost six months now. It is almost a four year low. The same goes for gold price. I will write a post on oil and gold co-relation in future.





Then, European Commission cut the growth forecast for EU region as shown below. They have been cutting this for a long time now and it generally to the downside which suggest they are always more optimistic than they should be.

In its autumn estimates, the EU executive said the euro zone's economy would expand 0.8 per cent this year, 1.1 per cent next year and by 1.7 per cent in 2016 - a level the Commission said six months ago would be achieved next year.

Then, after the initial jump in Nikkei in Japan due to "stimulus", the stock growth is faltering.

How long before another stimulus comes? Probably not long.

Should you get into stock market in India? If you want to do speculation then yes, but of course after the slight dip that will come right before the stimulus that will push the central banks to do something.



The fact however that is coming to the fore is that even with all the stimuluses since 2008, real economic growth is not happening in advanced economies. But that is unlikely to stop them from doing more of it. Since the new money mostly goes into stocks and the Govts and Central Banks want it that way, this will take stocks to higher values. But this is a purely speculative adventure.

1 comment:

  1. Very informative, keep posting such good articles, it really helps to know about things.

    ReplyDelete