“Sun Worldwide” believes that the majority of consumers are pleased with falling real estate and other asset prices. Many welcome the price-cutting campaigns being sustained by retailers in response to the most severe economic recession in living memory.
Sources close to “Sun Worldwide” suggest that the efforts of the central banks to fuel inflation are not having the desired effect just yet because they appear to be aimed at increasing prices in assets that are generally bought with borrowed money including real estate and equities.
Unfortunately, the extremely loose fiscal and monetary policies of key central banks have had undesirable effects on the price of commodities like food and fuel which are essential items for all households.
“Sun Worldwide” analysts are advising clients to take advantage of the upward trajectory for the price of oil by buying into the companies that stand to benefit from it. They maintain their conviction buy recommendations on oil and gas explorers and oil services companies.
They warn, however, that inflation is largely inevitable because central banks are unlikely to withdraw stimulus from their economies while unemployment numbers are still rising as this would make governments more unpopular than they are now.
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