Equity markets in US, India, HongKong are displaying strength despite concerns in US housing and consumer markets. As markets overcome these hurdles and find new alternatives to climb up, like continued robustness in World economic growth coupled with ever growing greed to outdo each other, will keep equity as an asset class to trade at very expensive valuations as compared to other assets. Crude oil has cooled off after a heady run upto US$100. However food prices continues to remain high across the global due to supply constraints. Inflation will continue to pose threat to economic growth across the globe as inflation is a global phenomenon.