There’s one word to describe the World Economy today – volatile.

With the political changes on-going in the Middle East, the whole world seems to be biting it’s fingernail in anxious anticipation of its developments. Amidst all these events unfolding, everyone seems to be concerned at such a precious commodity, oil. Oil has such a powerful effect on the economy and it goes beyond affecting inflation. Oil, in many instances even starts wars. With a population ever dependent on oil, the events in the Middle East is something of a concern for everyone. 2011 is beginning to be such a tumultuous endeavor as political protests seems to be on the rise. From Egypt and now Libya, even affecting Africa.

How will all these affect the world economy? Adversely, in my opinion. While I am sure that there are positive developments in store, it usually gets bad before it gets good. As the saying goes, it is always the darkest before dawn. I can see many negative effects that can spur with all these going on; inflation, geo-political friction, further recession and the like. But there’s always a silver lining into every cloud… the changes may result to freer trade and political stability that can usher unprecedented growth.

Like any challenges, there are always opportunities and yes, investment opportunities. In my next blog, I will delve into some practical opportunities for the discerning investor as well as my unsolicited advise for the Philippine Government.

… to be continued.