One of Four Financial / Stock Market Scenarios Will Happen

Below I have listed four possible economic situations that I believe currently have a high potential of coming to reality.

1) Inflation kicks in hard and fast.
Inflation must grow to support current and future growth of the Dow Jones Industrial Index prices.

I’m thinking the Feds are trying hard to pull this one off by printing dollars and are counting on this to help solve the debt problem. The FED hopes that printing dollars will also help jumpstart the world economy and help the USA maintain a strong financial currency position. It’s an all or nothing approach.


2) Sharp Stock Market Correction Coming.
No inflation means no support for inflated stock prices.

This theory works against everything the Federal Reserve is counting on. It will mean that the Fed has failed to accomplish their above goal.


3) Major expansion of world economic growth.
Expansion of economic markets world wide will help support the elevated prices of the mostly international stocks in the DOW Jones Industrial Index. Cost of hard goods goes up with some off setting efficiency plays.

An orderly world order must be maintained for this scenario to play out. As of today world order is going in the opposite direction.


4) International conflict syndrome.
This is when essentials inflate and stocks drop fast and hard. Conflicts disrupt the sensitive trade routes around the globe.

This is a world war three type scenario and if US policy doesn’t change fast this can become reality quickly.

More likely than not (three out of four indicate inflation) I’m thinking inflation is coming and your trading and retirement plans should account for inflation.

I hope the above forex currency trading information was of help to you.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and Currency Information source.

The above information is opinion based except where noted. Always contact a licensed professional for information on the above subject or BEFORE applying or practicing the above information.