Now Days, everybody talking about how world economy is growing ..so & so… Where as some analysts are warning about recession. Then what is the real picture?? lets discuss …
Risk of Global Recession.. just Fear..?, imagination..? or reality..??
After recession of 2008, the central banks of major countries changed their monetary policies to boost (self) economies.
But real question is that, the loose monetary policies (like bond buying program, lowest interest rates ) are really treating the disease? or the policy makers are working on simply stopping the symptoms?
Currency war & loose monetary policies are simply wrong drug dose based on wrong diagnosis.
Giving stimulus package for economy is not a bad idea, but it seems like that the policy makers (of central banks of US, Japan & Euro zone) are working on symptoms, not on disease.
There isn’t big change has seen in world economy after 2008, But commodity & stock prices are rose very speedly due to quantitative easing programs, & developing countries get punished due to high commodity prices.
Nowadays, we see there is a competition of depreciate self currency to get benefit by exports, Isn’t look like a proxy Currency war??
major central banks has treated on the symptoms of flu of their own economy, but they gifted a new disease to world, although the new disease is not showing its symptoms as it is creating Multi Drug Resistance capacity & may show his power after a break.
There is a most possibility that the New disease will attack on world economy, when everybody thinks that ALL IS WELL..
At that time, there will be a big problem as the ‘New disease’, which has been treated by major central banks as normal flu, will be turns in XMR-TB or untreatable Pneumonia.
Let the time work…& see.. was the monetary policies granted as right booster dose or was wrong dosage treatment on Tuberculosis by assuming as simple cough.
That will be great help for world economy,.if treatment of monetary policies are right & will be like a curse if those policies are wrong, which changed simple cough in Extensively drug-resistant Tuberculosis.
Karl Mark says:” History repeats itself, first as tragedy, second as farce.”
So.. just wait n watch… will history repeat to recession of 2008 ? 2001 or 1920..
Anyway… we should not worry about that right now... Just enjoy the Party of new Highs of Stock Market,
Indian economy might not get any serious harm from the future recession because Indian Govt is working on very good policies, taking right decisions for long term benefits, & am sure Mr.Modi & Mr.Rajan will do a noble work for india & indian economy, although Global market crash may affect our market but not on economy.
So….
Go long with selected Stocks, Hedge them properly, Exit Long if signal changed..
Don’t be greedy…! Don’t go Short… & Avoid penny Stocks, otherwise you may be trapped very badly.. Stay with Large cap stocks & respect Chart signals.
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