After an extended weekend of football games and get-togethers, yours truly is back amongst the midst of writing the blog. The weekend of the English Premier League has proven that the Manchester Clubs will be the title contenders as the season draws to a close. The shocking news was the sacking of Andreas Villas Boas- the Chelsea manager-due to the lack of positive results from the club. The search is on for the next manager at the helm of affairs at Stamford Bridge. Nearer home, the fire that broke out in the Kalimati Vegetable Market was the talk of the town which left scores injured and few dead. Our condolence goes out to the bereaved families.
Getting back to the financial markets, the five essentials that an investor needs to be reminded about are as follows:
- Inflation Under Wraps
Some form of monetary stimulus in US will continue indefinitely as trouble persists to such degrees in the global economy, namely in Europe. Gold is suggesting that the global economy is headed for hyper-inflation. Nonetheless, this dollar driven inflation that one is witnessing grows more intense every day.
- Bullish Run for Gold
Gold is becoming the ultimate bank accounts for many across the globe. The current precious metals bull market which began in 2001 was surprisingly trading at a modest $255 per ounce when it skyrocketed to the prices of today.
- Developed World Still Leveraged
The developed economies are still drowning in debt. If Greece, has now entered into a depression, things are about to get much worse for the countries like Italy, Portugal and Spain. It won’t take long before these countries will have to begin radical monetary reform.
- US Incomes Flatlined
Real Wages continue to remain flat on balance, as prices continue to rise. Analysts don’t just need to see better jobs data from Washington; they need to see better income data. The US cannot rely solely on its wealthy citizens to fire up the national economy. It needs a strong middle class, not like second class citizens working two jobs, or earning less than they did a couple of years back.
- Oil Factor
Geopolitical situation across the globe is keeping the oil prices higher. Until geopolitics gets out of the way in the case of Iran, and until the Central Banks stop throwing money around, then oil should remain at these levels or higher in the months ahead. Watch out in the Gas Stations!
Note: The blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred. | 
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