Global Economic Forecast Jun'01'2009

Today, the mayor economies in the world are experiencing a deep recession, with the US, UK, EU, & Japan, taking their reference rates to a level closer to “0”.

The US & the UK have already undertaken steps to bringing liquidity to their economies by actively printing money, as well as actively buying their own Treasuries.

In the meantime, the EU has already implemented a program to buying up to Euros 160 Billion in Corporate debt.

The market consensus has unfolded the most probable scenario: once the global economy bottoms out this recession, the excess of liquidity will trigger inflation pressures.

To combat this inevitable unaffordable disease, the mayor economies will steadily begin to hiking their reference interest rates; an effective short-term monetary policy tool.

To downplay this probable scenario, investors should start to implementing inflation hedge policies in the near term future; lately implemented policies will be pointless from an inflation hedge point of view.



This document is not an invitation by Rebagliatti Morixe Sociedad de Bolsa SA to make an investment nor it constitutes an offer to buy or sell. Potential investors should note that alternative investments can involve significant risks. This document is for information purposes only and should not be construed as an offer, recommendation or solicitation to conclude a Transaction and should not be treated as giving investment advice.-

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