Friday, February 27, 2009

SOS Inflation

Pls do not take the CPI figures literary, the basket of items is bias, just x2 on the figures above.

2008, the financial institutions contribute about 40%-50% of GDP, what happen if is wipe out in 3rd Quarter of 2008 and 2009?

Ohh no, the US dollar is sinking!


The profits are debt driven, in short, not sustainable.
MyView
  1. 1st Choice. The US has to deleverage (may take a little while, since the administration is printing more money): Not continue to spend like what it is done in last 10yrs and in 2008 & 2009 (stimulus package). Solution: GOLD, Gold mining stocks, Silver, silver mining stocks.
  2. 2nd Choice. CHINA AGRICULTURE stocks is also recommended especially China, why, food reserve is historical low, land for agricultural is shrinking, participation by private sector shrunked (cause supply problem), 2009 & 2010 no new debt to finance agricultural stocks (supply shrink). As a result of hyper inflation in US, and devaluation in its currency, shortage of food crises!!
  3. 3rd Choice. CRUDE OIL or crude oil related companies, first to rebound in a recovery, shortage, cost of production is escalating as well potential of war!!
  4. 4th Choice. A bit difficult, but go for HIGH DIVIDEND YIELD stocks in Australia, HK, NZ, Singapore.
  5. 5th Choice. FIXED DEPOSITS, depends which country you are in, but not US, UK or high debts countries.




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