Whilst the glass for BRM may be "half-full" as you put it, the glass for he global economy is decidedly empty at the moment.
This is about as bullish a sentiment you get
From Gottliebson today (courtesy Business Spectator)
"In the next few months China will stir and begin to take the opportunity to buy cheap resource stocks around the world. It will then embark on one of the most enormous infrastructure building programs the world has ever seen. There will be no feasibility studies – just "get out there and do it".
Demand for our resources will rise. However, there will still be social unrest in China, particularly in the Western provinces, because many unemployed Chinese, without social security, have had to return home to small plots of land as part of a major reduction in Chinese manufacturing capacity.
Meanwhile, in the US, the massive Obama stimulus package will bolster US demand. China is not able to quickly supply it – even if it were, the skirmishes between the Obama administration and China over the yuan (Obama believes China manipulating yuan: Geithner, January 23) and over carbon pollution will hinder supply.
As a result there will be a rise in American inflation. We will stop the story at that point, because Americans will have to start saving or there will be a whole new round of problems. We all know that there are hundreds of events that could upset a scenario like this and I am not bold enough to forecast that the scenario that combines some of the views of the two economists is what will actually happen.
However, if the politicians in China and the US carry out their promises, it is a likely outcome. The Australian government's income depends on resources and our share market is underpinned by them. Let’s hope we are once again the lucky country, but there is a lot we need to do to make our own luck.
Have a wonderful Australia Day weekend and if you're travelling, drive carefully."
BRM Price at posting:
87.0¢ Sentiment: Buy Disclosure: Held
