No amount of huffing and puffing can inflate a leaky balloon. The Federal Reserve’s balance sheet has swelled to record levels amid the credit crisis, prompting concern that sharp U.S. inflation is soon to follow. But in spite of the Fed’s bulging balance sheet, the nation’s money supply is barely growing. That makes the prospect of near-term inflation less likely.
Japanese private investors have taken record bets against the yen, using their well-worn strategy of ‘buying on dips and selling on rallies’.
Is Spain the next Greece? Or Italy? Or Portugal?
The group loss, which compared with a $3.46bn net profit for 2008, came following the worst year in the history of container shipping, which accounts for more than 40 per cent of the Maersk group’s revenue.
“If there was an impediment, in addition to a murky economic outlook, it is valuation. There were revisions to the Shiller valuation data and the latest reading on the normalized real P/E multiple is at 20.64x, up from the 20.0x in February and 20.5x in January. The long-run trend is at 16.36x, suggesting that the S&P is currently overvalued by 26%.”
sell S&P 500 SPDR (SPY)