It’s been interesting to watch the markets set up for alternating scenarios through this downturn. Several times during the last 22 months since Lehman went under, fears of inflation have swept in like waves on the beach. Just as quickly the water receded from the shore, leaving only sand and shells in the form of low market rates and a confused stock market.
The second quarter of 2010 reflected the outdraft of the first quarter’s crashing wave in the form of heightened concerns about price pressures worldwide. To be sure, we did have a few rate increases across the globe recently, but they were focused on commodity-driven economies that are seeing growing demand for their undiversified product sets.
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