No surprise from the Fed yesterday. Their feeble statements about inflation just prove what I've said all along: When considering deflation or inflation, the Federal Reserve will always opt for the lesser of the two evils, inflation! Nevertheless, many of the so-called experts on Wall Street seem to think that oil and gas prices can't go any higher ... that China's raising its domestic energy prices will kill demand ... that the bull market in natural resources and the jumps in inflation are over. I believe they are wrong. Dead wrong. Why? All of my experience ... all of my indicators ... all of my proprietary cyclical and technical models tell me oil and gas prices are headed much higher ... natural resources are going to double ... triple and even quadruple ...

Fed Chairman Ben Bernanke is trying to support the dollar, making rare statements on Tuesday about how the weak dollar has contributed to inflation, and that the Fed is closely monitoring the dollar. Bernanke went on to repeat his inflation concerns while speaking at Harvard University yesterday, saying that “some indicators of longer-term inflation expectations have risen in recent months, which is a significant concern for the Federal Reserve. We will need to monitor that situation closely." Interestingly enough, his comments come at a time when my models have been forecasting a bounce in the buck, and a short-term correction in gold, oil and other natural resources. So Bernanke’s unconvincing attempt to support the dollar comes as no surprise to me. These moves tend to happen at normal turning points in the market, which proves once again that it’s not the news that drives the markets necessarily, but it’s the ...

Today released numbers show good shape for European economies. Germany more than doubled estimations and grew 1.5% in first three months of 2008 (quarter on quarter). Non-seasonally (quarterly basis) GDP grew 1,8%.Another surprise is coming from France. Quarter on quarter growth by 0,6%. Great Britain up by 0,4%.Smaller European economies, Greece +1,1% and Austria +0,8%. But others shrank slightly. Portugal and Spain registered in the negative, -0,2% respectively -0,3%.And how about Central European emerging markets. Czech Republic quarter on quarter +0,9% but non-seasonally still nice growth by 5,4%. Slovakia non-seasonally slow down from 14,3% to 8,7%.http://stockweb.blogspot.com/atom.xml