A somewhat frightening assessment of where the global economy is right now is shown in the video from CNBC below. Bear in mind that the dude’s name is Stephen King. There’s another chap by that name who’s a good story teller!
Things do seem to be getting better though. The Euro, Swiss Franc, Aussie and Canadian Dollar all gained on the Dollar this last few days. I have said that the Risk Aversion trade which we have been seeing might be losing it’s edge though. That means that we can no longer assume that things are getting better simply because the Dollar is losing value. This is especially true as the Yen also gained on the Dollar! Normally, the Yen would lose as well.
The numbers out of Europe this week have been good. Commodities are also doing well. Oil is back above 50 Dollars a barrel. There is hope that we have turned the corner. Maybe Mr. King is just being a killjoy.
Till there is more stability, it is still a trade by the day type scenario. Good news in a particular region will mean up, bad news down.