Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs, prefers domestic consumer stocks in developed markets. He’s skeptical over the industrials and commodities and claims their valuations aren’t at shock levels, due to decelerating earnings.
He believes this is the ‘last wave’ of crisis and points to how the US and Europe moved to zero rates and QE to stabilize markets. He thinks Asia needs policy adjustments that will convince markets that growth is sustainable. In other words, Asian needs QE.
My only question to Peter is, how the hell is that going to happen without the world throwing a fit about devaluing Asian currencies? By devaluing their currencies, they’re exporting deflation to western markets.
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China did massive “Stimulus” in 2009 and on. All that money went into commodity speculation, which led to Property Speculation, which led the Money fleeing the country. That didn’t work at all for the World. Now we massive amounts of commodities that speculators don’t want to hold, massive amounts of buildings empty and a China Govt telling HSBC they better not write ANY mortgages for China Citizens trying to buy Foreign Real Estate. Big Ugly Mess. See you at SPX 577ish.
^^^ She is so hot isn’t she
Anyone talking Qe now is clinically insane. Bears were called loose screws at the beginning. To think Qe should be retried after the last years only to need it again in failure is Insane