Will Rahal

6 Themes Affecting the Global Economy

Employment in the financial sector will continue to decline.
In an inflationary environment, P/E contract as the financial markets fall out of favor and the sectors associated with the production of mines and Natural Resources(NR) do well.

Commodities, China Selloff Based On Need For Liquidity, Not Growth Concerns

I have taken a look at YTD Retail Sales and CPI.

CPI is increasing at an annual rate of 4.8%.
In an credit crunch panicky environment
Inflation is still tying Mr. Bernanke’s hands.

Real Retail Sales is at .9% indicating a weak economy.
The weakness in the US will have repercussions in the
stronger overseas economies.

The US slowdown and the unwinding of the Yen carry trade will cause massive liquidations of assets, including commodities.