The re-emergence of inflation expectations

[phantom_opera]

THE risk of inflation has been ignored by investors in the last few years, but that risk is returning and investors should adopt an inflation-beating strategy in the positioning of their portfolios, said Yu-Ming Wang, Nikko Asset Management's international chief investment officer.
In his presentation titled "The re-emergence of inflation expectations", Mr Wang said that one of the big issues the world is facing now is capacity. The process of rapid capacity expansion in the past decade or so is in reverse.
China, the factory of the world, is running out of cheap labour. And the country is grappling with massive environmental problems, from smog-choked cities to filthy rivers, as a result of the pursuit of economic growth at any cost. Pressures are now mounting from the ordinary Chinese people for the government to clean up the environment. This will mean a cutback of some production capacity.
"Asia's production capacity can't continue to go up, and so it won't continue to drive down inflation," said Mr Wang at a media conference held in conjunction with Nikko AM's inaugural investment forum. Strategists from the firm's different offices had gathered in Singapore to share their insights with local product distributors and customers.

=> Inflation there may be, STI is very weak relative to Dow... not a good sign for Singapore economy

[Leo.Cheng]

Very true. What phantom_opera said absolutely reflected the current sentiments among a few major investors right now.

The fear is the global investing community usually is too immune and slow to react to any impending risks. They can see it, but they will not panic until the race is ran into the last leg.

Sad, but that is the truth.

Good post, brother phantom_opera :) Keep them coming !

[phantom_opera]

Very true. What phantom_opera said absolutely reflected the current sentiments among a few major investors right now.

The fear is the global investing community usually is too immune and slow to react to any impending risks. They can see it, but they will not panic until the race is ran into the last leg.

Sad, but that is the truth.

Good post, brother phantom_opera :) Keep them coming !

I first sense it when I read some resumes from Beijing seeking work in Singapore ... 8/9y experience existing salary is 350,000 RMB per year (70k SGD). Wage inflation in India/China are like 10%pa :scared-5:

Even Foxconn moves their factories to western part of China ... eventually will be Tibet?? :rolleyes:

[Leo.Cheng]

I first sense it when I read some resumes from Beijing seeking work in Singapore ... 8/9y experience existing salary is 350,000 RMB per year (70k SGD)


You see, the human being is a very special group of creatures unlike the rest of the living organisms on planet Earth.

They know that climate is changing, peak oil is coming, clean water and food will be a problem; and they all know the solutions to these problems. Yet, they are slow to act and will not take the first step unless the first real crisis happened.

throughout Human history, the majority of the homosapien has been behaving like frogs swimming in a pot of boiling water- very hindsighted. Very few foresighted human beings like our Men in White in this world.

Count yourselves lucky to be in Singapore.

[phantom_opera]

Foxconn Technology Group, a major manufacturer of Apple Inc's products, is expanding the production of smart devices in southern China, according to a report.

Experts said the latest investment, reportedly worth 5 billion yuan ($802 million), in Nanning, capital of the Guangxi Zhuang autonomous region, will enable Foxconn to consolidate its "moving inland" strategy. This is in line with the city's plan to boost electronics industries.

[phantom_opera]

中国广义货币M2余额、M2与GDP之比相对其它国家较高，是中国经历金融危机后的一个热门讨论话题。今年2月末，中国广义货币M2余额为99.86万亿元，同比增长15.2%。

[bargain hunter]

will inflation expectations be up in US as well? if so, will US interest rates rise sooner rather than later?


THE risk of inflation has been ignored by investors in the last few years, but that risk is returning and investors should adopt an inflation-beating strategy in the positioning of their portfolios, said Yu-Ming Wang, Nikko Asset Management's international chief investment officer.
In his presentation titled "The re-emergence of inflation expectations", Mr Wang said that one of the big issues the world is facing now is capacity. The process of rapid capacity expansion in the past decade or so is in reverse.
China, the factory of the world, is running out of cheap labour. And the country is grappling with massive environmental problems, from smog-choked cities to filthy rivers, as a result of the pursuit of economic growth at any cost. Pressures are now mounting from the ordinary Chinese people for the government to clean up the environment. This will mean a cutback of some production capacity.
"Asia's production capacity can't continue to go up, and so it won't continue to drive down inflation," said Mr Wang at a media conference held in conjunction with Nikko AM's inaugural investment forum. Strategists from the firm's different offices had gathered in Singapore to share their insights with local product distributors and customers.

=> Inflation there may be, STI is very weak relative to Dow... not a good sign for Singapore economy

[phantom_opera]

S11咖啡店　所有饮料起1角

akan datang ... tightening of immigration will screw up prices soon

COE also will rise as motor traders now allow u "higher trade-in"

[kane]

The way people dump stocks are as if the economy is going into deflation environment. Heh. Inflation will come as a rude shock.