“There is a big difference between an inflation scare and an inflation cycle and most pundits are underestimating the degree of austerity that is on its way at all levels of government, which will outlast the commodity boomlet.”

-DAVID ROSENBURG

POINTS TO PONDER

1. With inflation fears running rampant once again,

“In China, of course, just like in most emerging markets, you’re dealing in a country where the rule of law and the independence of the courts are extremely questionable… That’s why emerging markets…deserve to trade at a discount compared to developed markets.”

-LOUIS GAVE

Being Evergreen Capital’s chief investment officer has many advantages,

“You can never say never, but I cannot imagine a convincing argument for further quantitative easing after this round, given what is developing now in the economy.”

-Dallas Fed Chief RICHARD FISHER

POINTS TO PONDER

1. The battle against inflation in emerging markets continues to escalate, largely driven by soaring commodity costs.

“No persons are more frequently wrong than those who will not admit they are wrong.”
-Author FRANCOIS DUC DE LA ROCHEFOUCAULD

POINTS TO PONDER

1. The Fed’s ultra-easy monetary policy is looking increasingly out-of-phase with the mounting evidence of a healing US economy. The manufacturing version of the Institute of Supply Management (ISM) Purchasing Managers’ Index (PMI) and its employment index have surged while ISM’s service sector index is also showing strong expansion.

“The mood in the market is better, but the fundamental problems of the euro zone remain unresolved.”
– NOUIEL ROUBINI, NYU Professor of Economics (and one of the few academics to warn in advance of the housing bubble’s demise).

1. The US stock market has witnessed a persistent narrowing of the overall valuation premium by faster growing companies.