The recent US data is crazy.
On one hand, the Dow is breaking new heights.
On the contrary, housing sales has just dropped 18%, coupled with rising energy costs that has hit consumer confidence. People are also finding it difficult to find jobs. Additionally, the greenback is losing ground against major currencies all over the world.
While inflation is rising, the only consolation that i see is that US GDP is still in the black. But with the ever increasing focus on Iraq, will US's reserves ever recover? If GDP falls......it will be my 1st experience with stagflation.
Time to buy insurance.
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