Thursday, September 23, 2010

WHERE'S THE DOUBLE DIP?

There has been much speculation about the true condition of the world economy and the prospect of a "Double Dip" recession.

Recent reports have touted the end of the longest recession since the Great Depression.

While you might think that this means the danger of a double dip has passed - it is, on the contrary, a precondition of a Double Dip.

Why have we not yet seen a Double Dip?

I believe the markets, which have suffered from low trading volume, have not yet assumed the position for a correction.

Private investors have been afraid to wade into the markets.

The emerging story that the recession is over may draw more investors into the market, which should result in a nice run up.

Once the market balance/volume favors an exit by market insiders then a serious market correction could occur - perhaps as soon as the end of October.

The only positive sign for the world economy is that oil prices are weakening... otherwise commodities and gold have been moving up... and the dollar is weakening.

The Global Power struggle between the West, China, and the Axis of Evil will continue to manifest itself in financial markets - don't let the results of this struggle catch you off guard!

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