At A1GLOBALINVESTOR.com we continue to see the japanese stock as the most promising in 2007. Low interest rates and strong earnings growth will lift the market higher. The risks remain a lower GDP growth rate and deflationary pressures from lower energy prices. We are certain that the japanese central bank will react to the risks by keeping a high amount of liquidity in the market, which will increase asset prices. This setting is unique for Japan among the financial markets of the industrialised world and promises an above average performance.
Country Analysis
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Global Analysis
Just as predicted by A1GLOBALINVESTOR.COM oil prices are falling. A couple of months ago about every analyst was writing about shortages in the world oil supply and the unstoppable rise of the oil price. A1GLOBALINVESTOR.com pridicted that in September 2006 the oil price will be lower than 12 month before for the first time in the last 5 years. The oil price has now already a deflationary effect on the overall price trend. This is very important as the case of rising energy prices, rising inflation and rising interest rates can no longer be made. Just as predicted inflationary pressures will decrease in the coming months and the FED will start lowering the FED funds rate in the first half of 2007.