Yo, yo bleeding market with the TS Paulson short greedy selling with the morning economic news.
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Appearance is similar, but Not 1970s stagflation even though we see high commodity price hype -- NEED TO PLANT MORE CROPS in China and in India and to invent brilliant alternative energy sources -- because the price speculation on commodity is based on "GLOBAL ECONOMY & DEMAND". Other commodity components are not vital necessities.
I noted "1998 scenario", but not with "1999" beta, but with lower beta.
Remember Bernanke speech on 1970s high inflation anticipation titled with "Price Stability", as we are seeing the similar phenomenon as traders are hyping prices with high inflation anticipation, but the nature of the speculative hype is based on different reasons, i.e. global economy and demand.
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When traders are hyping commodities, its effect is no-brain answers.
Big, scary terms like "recession," "inflation" - and the latest in the hit parade of economic fear - "stagflation," throw intense anxiety into the public heart as harbingers of doom ahead.
For smart investors, though, down times are signals of opportunity, a chance to capitalize on the irrational panic of headline-sensitive chicken-hearts.
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