https://sg.finance.yahoo.com/news/chinas-factory-gate-inflation-hits-four-month-high-025321639--business.html
China CPI is at 2.5% in April, a 6-month high.
This is not unexpected as we've expected CPI to rise in China in our previous post.
https://sg-stock.blogspot.com/2019/03/global-inflation-or-deflation.html
US-China trade tariffs will also contribute to higher CPI in the 2nd half of 2019 in the US & China.
We need to understand the chain of events in a real economy, starting with the CPI below.
CPI/PPI ----->> M1-M2 spread/3m-10y yield spread ----->> PMI ----->> GDP
https://sg-stock.blogspot.com/2019/04/the-us-economy-has-flipped-and-fissures.html
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2 comments:
No worries! Another 1-2 bull years. These few months present a BTFD moment!
China's neutral inflation rate is 3% which is higher than the 2% in the US.
I do not recommend buying on the dip because both the US and China are really not doing well economically. We need to monitor the chain of events to see how economic situations are unfolding. My guess is that the stock markets won't do well for these few months (may, june & july) and there'll be rebounds by August until the end of the year because of EU's QE in Sept.
http://sg-stock.blogspot.com/2019/03/what-is-targeted-longer-term.html
The central banks knew about this and they boosted their gold reserves recently.
Like I said before, believe in what you see and not what you hear by looking at what the central banks are doing.
http://sg-stock.blogspot.com/2019/04/central-banks-are-adding-gold-to-their.html
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