World Economy

The U.S. Federal Reserve, the Bank of England and the European Central Bank all have been disappointed to varying degrees about how little inflation has picked up, or indeed how it has spent too much time going the opposite way.

The Bank of Japan, which has been trying to ward off deflation going on two decades, has now been hit with a counterproductive surge in the yen after a contested decision last month to adopt a tiny negative interest rate.

Even in China, where it is difficult to fathom the sheer magnitude of fiscal and monetary stimulus Beijing has piled on since the financial crisis, consumer price inflation is remarkably tame and likely to remain so.

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Rally led by high-beta stocks !

Sceptical about the current move, simply because of the quality of the rally. This has been led completely by high-beta stocks and there is nothing on the ground to suggest the same.

Do we have any reason to believe on the ground, globally or domestically, to understand what has changed or likely to change over the next 6-12 months? It might very well be a dead-cat bounce.

Gold is considered a safe asset that tends to rise in demand when people are worried about the economy or fear inflation. Gold skyrocketed earlier this year amid concerns of a recession and bear market in stocks.