Business Magazine

Foolish Friday – Futures Fuel More Folly

Posted on the 01 April 2011 by Phil's Stock World @philstockworld

It seem silly to even discuss the news because the news is not particularly good but – so what?  What does news have to do with this market?  I think the only news that matters is the news that is ostensibly bullish, which is our own long-term bullish premise on hyper-inflation.  That is the rising tide that will lift all ships as the cost of everything, including stocks – goes up and up and up.  Whether or not there is any real relative gain is besides the point – you’d better be invested in SOMETHING or the thing you are thinking about buying today will cost you a hell of a lot more tomorrow.  

Foolish Friday – Futures Fuel More Folly
China is certainly getting that message loud and clear as "panic  buying" has hit supermarkets, shops and even online shopping websites in Shanghai.  That old bugaboo "inflationary expectations" has infected shoppers in Shanghai, who are rushing to buy up goods in anticipation that prices will be higher tomorrow than today.  

"People are overreacting," said Sun Lijian, an economist at Fudan University. "But you can’t blame them when so much news about price increases springs up everywhere, warning that you may wake up the next morning and see a higher price tag on the product you want to buy." The Consumer Price Index, which measures broad price fluctuations, seems to be invading the public psyche. Even unsophisticated old peddlers on the street now know the phrase CPI.

In February, China’s CPI expanded 4.9 percent from a year earlier, the same rate as in January. That’s above the government’s 2011 target of 4 percent inflation. Worse, some economists are predicting that inflation may have accelerated to 5 percent in March.   Meanwhile, Barclays declares the sky is falling in Hong Kong, noting that rising rates (due to that same inflation) are likely

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • We Need More Gen-Y Entrepreneurs to Fuel the Wave

    Need More Gen-Y Entrepreneurs Fuel Wave

    The business world has been watching this emerging generation with trepidation, and a lot of us haven’t been sure who would be the winners, and who would be... Read more

    By  Martin Zwilling
  • George Osborne Backs Independent Banking Commission Report’s Call to Ring-fence...

    George Osborne Backs Independent Banking Commission Report’s Call Ring-fence Banks. Financial Folly?

    Sir John Vickers' Independent Banking Commission has called for ring-fencing of the banks. Chancellor George Osborne has backed the recommendations. Some warn i... Read more

    By  Periscope
  • More Plans

    More Plans

    Just like that chair, I can't seem to get these houses out of my head, so much so, that I had to look through I Can Fly several times to make sure there... Read more

    By  Blemon
  • Friday Meme: Follow Friday & Blog Hop

    Friday Meme: Follow Blog

    Follow Friday is Hosted by Parajuunkee's View. Follow Friday Question of the Week:If you are a fan of Science Fiction what is your favorite book? If you... Read more

    By  Bookaholic
  • Glorious Friday

    Glorious Friday

    Friday. Its here. This day is today. And on that note, I have not much else to say.Jacket: H MDress: made by meBelt: vintageNecklace: gift from Sam (isn't... Read more

    By  Alysonisneat
  • Five Friday Facts

    Five Friday Facts

    In 2005, 64% of the 109 million U.S. families lived in single-family homes. From 1950 to 2005, the average size of a new U.S. single-family house increased by... Read more

    By  2ndgreenrevolution
  • Happy Friday!

    Happy Friday!

    I finally managed to eat some kale tonight! I keep thinking I should eat it more often but I'm always trying to make it through my gigantic Costco tub of spinac... Read more

    By  Chocolateandoranges