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After closing down another -2.1% overnight at 9,963, Pakistan's Karachi 100 Index has lost -34% of its value since May. Inflation was reported this morning at fresh 30 year highs of +24.3% year over year growth! This is not good.

What people are missing in Asia right now is that the economic backdrop is very similar to that which Nixon had to deal with here in the US in the 1970's - wage and price spirals in tandem.

On its own, stagflation is plain bad. Combined with the kind of geopolitical risk that Pakistan carries, any investment in this country is plain scary.

KM
  • The Karachi 100 Index Looks horrible
(Chart courtesy of StockCharts.com)