Thursday, March 31, 2011

This can't continue indefinitely.......

Further to my previous post, the current move cannot continue forever as expectations of greater liquidity and thus inflation will indeed become self fulfilling causing central banks to begin to raise rates. Of course they will err on the side of caution then risk raising rates too early so expect a continued rise in risk assets.

Oh by the way, quant studies continue to point to higher prices, 3 months to 1 year out.

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