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Notes to myself, possibly of interest to others.
-- Bill Northlich
Friday, August 12, 2011
Rosenberg Daily - Global Slowdown - Medicine Therefor
China’s central bank warned today, in a 60-page report, that the downside risks to global growthare considerable. Also, the Japanese government just sliced its full-year GDP growth forecast to 0.5% from 1.5%; the Bank of Japan is looking for a grand total of 0.4% growth in fiscal 2012. The Bank of Korea kept rates unchanged at its policy meeting and issued a warning that global growth risks are squarely to the downside. For equity investors, there is now a rising premium being placed on companies that have earnings visibility — you pay up for growth when it becomes scarcer, as is the case today. Toothpaste, soap, detergent, and pasta are not going to fall out of fashion even as the global economy weakens even further.