Henry Thornton writes:

Some global macro gurus from
Sequoia Capital Management have just released their views about the global
economic prospects for 2006.

In summary: continued strong growth
“into the new year” and if there are no negative surprises, overall growth could
exceed the strong result last year. Goods and service price inflation is
expected to remain low and there is room for further rises in equity prices,
including resource equities. Global interest rates are expected to rise

Risks identified by the group
include bird flu, instability in the Middle
East raising oil prices and sharp falls in house prices in the
developed nations.

Nevertheless, despite the ongoing
trepidation investors have towards housing markets (and perhaps because of
it), the “owner-occupiers” re-entered the housing market in full force in
November last year (The Age). The record figures show that while the housing
boom may be over for investors, the Australian dream of a big house, a big
backyard and a hills hoist lives on.

Read on at Henry Thornton, where
Henry follows the news both locally and globally.