HBJ Capital: Don't see improvement in Global economy in near term, might take longer than a year.

Impact....

• Expect Crude & Gold to rise & Dollar to Fall.
• In order to rescue Fannie Mae and Freddie Mac, US govt is going to print lots of dollar again, which will make dollar weak, hence Crude & Gold will again rise.
• Rise in crude will cause inflation, which is bad for equity market, hence global equity market will plunge.
• Although dollar will weaken but don't expect rupees to become stronger, this is because India will suffer trade deficit due to large import bill of crude. So, no worry to IT/Export oriented companies.
• India's Inflation is expected to be 17% by Sep'08 which is extremly bad for economy.
• RBI will tighten the belt and rise interest rates which will bring down growth or IIP number lower.

In short HBJ Capital, don't see any improvement in India's or Global economy in near term. It might take a year or more to get back to normal.