As per our recent posts we want to reiterate the potential risk of inflation building up in world markets - this will indeed compound over the coming quarters, force rates higher and central banks will have to work some magic not to derail the economic recovery.
Enough of the doom scenario. From an investment perspective, there are opportunities; buy food producers. Food is becoming a scarcer commodity by the day and prices are on the up - which means margins will rise. Selective stock picking of potential take over targets will pay be rewarding in the medium term.
We will research the market and bring to you a number of stocks that we feel may be a good "buy" in the next few days.
In terms of trading, despite the recent rises in world markets we remain short term bearish and recommend profit taking/shorting.
Disclosure: we are short the UK FTSE and US DJ30.
The Dre Markets Team