Markets are jittery & in cautious mode after Ireland episode, TrendCalls Team wrote about this long ago before markets even factored this Issue. Now on markets would be looking for who is next in PIIGS countries after Greece Ireland gone next may be Spain & it is not a small country on the standards of bailouts, If Spain goes under water it will effect Euro heavily, thats what we are seeing in Euro prices. The spiraling effects could be on the commodities & they can retrace heavily. Second equation is of China which is tightening its monetary supply which can also put pressure on commodities. Which in general would be good for the health of the world economy in long term & inflationary pressure would be curtailed. But the ? remains what will happen to commercial properties & in the China if the tightening is too tight it will create a default rate too high which in turn will succumb banks with it too & it will create a havoc in financial markets. The markets will then adjust to the new dynamics very quickly & very sharply. Everybody will shift to safety, risk will be avoided Dollar will zoom defying gravity. These are just hypothetical views it may or may not happen. Caution in the air.
Views Given By TrendCalls Team
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