Central bankers’ inflation-fighting rhetoric moved to centre stage over the past week. A succession of hawkish comments from US policymakers persuaded pundits that the US rate-cutting cycle was over, resulting in a stronger US dollar, plummeting government bonds, predominantly lower global stock markets (with Asia seeing the most red), and non-agricultural commodities coming off the boil.

It is a dividend aristocrat as well as a major component of the S&P 500 index. It has been increasing its dividends for the past 40 consecutive years. From 1998 up until 2007 this dividend growth stock has delivered an annual average total return of 12.30 % to its shareholders.

In a volatile stock market, there are merits in taking on a short-term investment approach because all stocks, regardless of their underlying fundamentals, can plummet. Varying your trades and preserving your capital allows you to have a piece of mind and belief in your own abilities.

summary of why this company should deliver record profits the next few years and rationale for stock moving to $57

The increases demonstrate that global demand for Chinese goods remains strong, even though many Western markets are battling the fallout of a worldwide financial crisis. Indeed, the export statistics are serving as evidence of an economic theory known as “decoupling,” in which emerging economies in Asia and Europe have developed enough market place muscle to no longer be dependent on the U.S.

I am not in the "end of the world" school, but also have little reason to see a more optimistic scenario for stock markets than "muddle-through" action, typified by sub-optimal returns. Although banks are looking oversold on short-term considerations, they would need a longer convalescence period in order to rebuild their balance sheets.