Tuesday, October 30, 2007
Middle East and Central Asia
IMF released a servey about the global economy.
"The Middle East and Central Asia is undergoing a remarkable transformation driven by rapid GDP growth and high oil and non-oil commodity prices. The report presents common economic trends and reviews prospects and policies for the coming year in light of the global economic environment. This latest REO includes boxes treating both regional topics--such as growth in the Maghreb countries; developments in the oil markets; the boom in the GCC countries, and the impact of the recent global credit squeeze on the region--and country-specific reviews, of Kazakhstan, Armenia, Egypt, Pakistan, and the UAE." -- IMF Oct 2007.
I believe the smart money would flow towards the emerging markets and higher risk investments. Both China and the middle east countries may change their policy towards the US dollar. If this trend of "depeg" go on, the dollar will be in trouble while the oil and gold will be sky high. At this level, the inflation risk would help the investment returns. The market volatility will no doubt increase. My investment plan in 2008 would be :
- shift to more aggressive investment
- increase the holding of cash
- buy on dips
"The Middle East and Central Asia is undergoing a remarkable transformation driven by rapid GDP growth and high oil and non-oil commodity prices. The report presents common economic trends and reviews prospects and policies for the coming year in light of the global economic environment. This latest REO includes boxes treating both regional topics--such as growth in the Maghreb countries; developments in the oil markets; the boom in the GCC countries, and the impact of the recent global credit squeeze on the region--and country-specific reviews, of Kazakhstan, Armenia, Egypt, Pakistan, and the UAE." -- IMF Oct 2007.
I believe the smart money would flow towards the emerging markets and higher risk investments. Both China and the middle east countries may change their policy towards the US dollar. If this trend of "depeg" go on, the dollar will be in trouble while the oil and gold will be sky high. At this level, the inflation risk would help the investment returns. The market volatility will no doubt increase. My investment plan in 2008 would be :
- shift to more aggressive investment
- increase the holding of cash
- buy on dips
# posted by Lobo @ 8:37 AM 
