There are many headwinds going on International markets from Europe USA to Japan & Emerging economies each region country has its own set of problems. We start with Europe there are are weak countries & strong countries which are creating push & pull on opposite directions & the consequences is being faced by Euro, In our view they will not let a default happen in that region & will try to avoid it at any cost which will put pressure on Euro . As lately it was very easy to sell Dollar & buy relative currencies including gold that was giving strength to them. But from now on this will not be an easy trade to do as lots of Dollar adjustments have already happened in short term. In addition to all of this the age demographics is not in favor of any of the developed regions eventually all of it will come into play.We also think that some sanity will prevail in the minds of the political leaders of USA & they will trim deficits which will also give some leg up to the dollar & bring interest cost pressures down which are waiting to move upwards. If these things happen then there would be more rationalized growth all over the world. In our view Governments all over the world should reduce their kitty (pockets) so that a normal private sector growth can happen without any stimulus & artificial steroids.
Views Given By TrendCalls Team
