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The “BUZZ WORDS” for 2013

In this global “LOW-GROWTH” macro-economic environment, I would use the following “BUZZ WORDS” to define World Central Bank and global market activity for 2013, as I see it at present.

*(I may update this list as the year progresses, as various scenarios become clearer, and as new events unfold.)

“MONEY PRINTING” and “EASY MONEY”

  • the Fed (and other Central Bankers around the world) provides low interest-rate loans to Banks
  • Banks are supposed to make this money available to companies and individuals at low rates that they deem appropriate (however, as demand for loans picks up, no doubt the Banks will raise interest rates, even though the Fed may not…a risk that will have to be factored into a company’s costs)
  • the Fed’s goal is to produce a “WEALTH EFFECT” (precisely who will benefit remains to be seen)
“INFLATE”
  • wholesale and retail prices of goods and services
  • price of stocks, commodities, etc.
  • taxes (more…)