Last week TrendCalls Team wrote about China & its property bubble & the likely effects of the bubble crash when it happens. Central bank in China is clearly worried about property prices & inflation & the surprise rate hike is only to avoid the escalation in inflation & property bubble. The markets are likely to react on the above said development. But would there be a sustained reaction on commodities or will it be temporary blip. The biggest consumer of commodities China has to be rationale in it's approach of consumption & development. The reckless money supply it created will ultimately come to haunt its citizens via inflation. The World is still divided in two parts developed economies trying to stimulate growth & developing economies trying to curtail inflation it can bring a double whammy for the growth starved economies. But in our view little less growth will help tame inflation & rising prices in all sorts of asset classes.
Views Given By TrendCalls Team
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