Investment Chart Kondratiev Wave

Investment Chart Kondratiev Wave

Thursday, 11 November 2010

good news November 11

o Moody’s upgraded the credit rating of China and hing Kong to AA3 (while their Chinese antipodes did the opposite with US debt). This was one of the reasons why the Chinese equity market rose, the higher inflation on 4.4% was not so bad
. Because the collateral for Ireland as postulated by LCH is found the 10 year bond yields can decline now (temporarily?) from the current 8.9%.
o The equity markets of the PIG(S) are doing amazingly well given all te disasters since )ctober 18. The non financials have improved their balance sheets since 2009. That was seen before in Emerging Markets where currencies became worthless and corporates learned how to survive that and PIGS can do the same.
o The American Conference Board knows now also: in their official forecast for economic growth until 2020 they see more growth in the world than in 2000-2010 because of Emerging markets with their potential growth of 6.3%.
o Deutsche Bank sees consumption growth coming back on improved credit growth (see chart)in US
o A team of the White House tries by destructing sacrosant posts as social security, lower taxes for the middle class and lower defence spending the next ten years to save cumulative $ 4 000 billion (via 3000 billion less spending). In the proposed pace the government deficit will be gone in 2037 in the US(!). Chart of Robosaurus from Business Insider how you handle all those hot potatoes. Because this team cannot work with a robosaurus their plans don't have any chance of success.

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