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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 672.07-1.7%4:00 PM EST

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To: pater tenebrarum who wrote (26346)9/20/1999 11:11:00 AM
From: Fun-da-Mental#1  Read Replies (1) of 99985
 
Heinz, re. tug-of-war between inflation and deflation, that's been on my mind too, since last year. When I saw America doing well despite the Asian crisis, I thought maybe if the domestic economy is too hot and the international economy is too cold, then together they're just right. Global deflation goes a long way towards explaining why we've managed to have strong growth without inflation so far.

However I think this balance is tipping to the inflation side now as most of Asia recovers. IMO rising commodity prices show that on average the world economy is improving, regardless of trouble in Latin America and China. China may get a lot worse, but since their economy is not fully integrated with the world trade system yet we may be somewhat insulated from trouble there.

BWDIK?

Fun-da-Mental
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