BTW, got any questions? Feel free to ask me about Philippine stocks or whatever that has a chart. :-) I'd be happy to help. You can comment here or post it in the guestbook.
China and the rest of Asia remain very strong. China's numbers reveal that it is still in risk of overheating its economy, despite the measures it has taken to avoid this. Very strong trade surpluses, despite the recent financial turmoil and European distress, strongly point to the fact that China needs to do a lot more to "flexibilize" its currency and let it appreciate. A more-flexible approach would be beneficial, since it would achieve a more balanced growth, relying less on exports and increasingly in the purchasing power of its own consumers. As an example, the trade deficit excluding oil for the U.S. economy narrowed with every country except for China.
Now, should China gradually make the currency changes that I expect - as Brazil and Mexico have done for a long time - the Asian giant would benefit from an immediate easing of its internal inflationary pressures, while at the same time increasing the purchasing power of China's consumers.
This, in turn, would help support the global economy, balancing China's growth, and stoking its demand. The global commodity and exporting sectors would benefit from that heightened demand.
India's economy is set to accelerate into the second half of the year and beyond, and is stimulating lending. And Brazil's economy has been - and will continue to be - able to post accelerated rates of growth this year. It will grow at a 7.5% pace this year, with the rate moderating to 5% next year.
This environment is the ideal scenario for commodities.
The information contained in this blog are my own opinions and analyses, provided for information purposes only and should not be construed as an offer to buy or sell securities.