Sunday, October 5, 2008

Where is the money? Show me the cash!

Dear friends,

(in this post I will use a numeric metaphore to present some thoughts)

May we agree that:
  1. World's economy is ruled by 10 companies and 10 individuals?
  2. Financial markets are ruled by some efficient mechanisms, however the same 10 companies and 10 individuals are moving the cash switching from off to on shore?
  3. What's happening to world's economy is just a huge capital move from on to off shore?
  4. The money that exists off shore is cheaper, however it is a problem for who owns it.
  5. Switching between the 2 worlds is easy for millionaires. It's harder or impossible for others...

So, in this post I am putting my predictions on the table.

Google "ferrari sales"... The money that is missing inside world financial system will remain OFF untill the bottom is reached... However we can see that luxury goods will be the champions this year: because it is the easiest way of putting some coins ON the system.

Can I have your thoughts on this?

Best regards,
Ricardo

2 comments:

Bruce Lewin said...

Hmm, an interesting question, although I am not sure if luxury goods will turn out like you said... let's watch this space!

MBU - Spreading Strategy said...

I am not sure either dear friend... It is just a prediction... If we live we'll see :) Bets regards,
Ricardo