price the asset not time the asset !!!
|Posted by EJ on March 7, 2011 at 12:37 AM||comments (0)|
The current spurt in oil prices is nothing to do with its supply concerns ( it was propagated !!) but to do with the massive consumption by emerging economies and recovery seen in the US and europe. This time the peak cud be much higher and damage, even bigger. However it will take some time...say few quaters. The damage will be multiple times as it will derail the consumption recovery in emerging markets. The higher inflation is already a prob for the business, with all input cost going up, ...Read Full Post »
|Posted by EJ on January 13, 2011 at 11:19 PM||comments (0)|
Why blame poor onion for this chaos. In a higly inflationary India, any product or service cud have played the same role where there is no real clue about demand or supply, say railway fare, air fare, school fee, electricity charges, milk, tea, coffee, spices, clothes etc. Since onion being highly perishable and part of indian food culture, it was used as a potent weapon to get a certain lobby its cherished objective...RETAIL SECTOR FDI !!! It may create an orderly logistics, yet the base pri...Read Full Post »
|Posted by EJ on November 24, 2010 at 11:30 PM||comments (0)|
As we see the drama unfolding and the battle in the mkt continues, the " Vishmha Pitamaha" stepped in with all the ammunition. If you are seeing a very composed and resilient mkt, it is because of him. He stepped-in equity mkt, bond mkt whenever there is crisis to oblige his royal masters at Hastinapur ( read Delhi ). Only difference this time is "Vishma pitamaha" is trying to save his own ( shud we say robes ). Yes friends that is the reality of Indian mkt. Watch out for false resilience in ...Read Full Post »
|Posted by EJ on November 19, 2010 at 5:00 AM||comments (0)|
Call rate from abt Rs.10 to 25 paise ( imagine the cartel of few had taken us for a ride for 7-8 years that is excluding govt. utility providers...!)
Guess who is lobbying hard against number portability?
Who will gain in case the licences are cancelled?
2G service was milked to the extent by 2008 that incremental effort wud have got blood instead of milk !! so if govt managed to sell the spectrum then it did a smart thing...
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|Posted by EJ on October 25, 2010 at 3:00 AM||comments (0)|
Moderate growth signal kept coming from the US last few weeks suggest the growth is stable but not outstanding. By Nov end, the next round of quantitative easing may start. Consumption will remain soft in spite of holiday season.
G20 cud not agree to any firm point on currencies, hence left to the mkt forces to decide on this issue. We may expect further weaking of Dollar;subsequent uptrend in commodity prices and emerging mkt stocks. Emerging mkt like China, India faces bigger inflati...Read Full Post »
|Posted by EJ on September 23, 2010 at 11:01 PM||comments (0)|
Jobless claim in the US was marginally up showing the weakness in the labour market is still prevalent. Existing home sales data was better. However it does not imply any major change in housing sector. The continued tax credit will definitely help consumption but not housing. Going fwd housing is not going to contribute to the general economy significantly. Today's new home sales and durabale goods data will throw more light on this. Other data to watch out for is German I...Read Full Post »
|Posted by EJ on September 21, 2010 at 1:02 AM||comments (0)|
This is wot is called harvest season. There is ample chance that the current rally may extend to one more mth till Q2 results are out. One catch; the data due this week may slow down the momentum a bit; shud be used as further buying opportunity. FOMC meet tomorrow will throw light on the state of recovery in the US and elsewhere.
With first round of correction, move into midcaps; will outperform the big caps. Bigcaps will stabilize at these higher levels unless the results show ugly su...Read Full Post »
|Posted by EJ on September 6, 2010 at 2:34 AM||comments (0)|
Last Friday's job data soothed the nerves of the mkt across the globe. A 57K drop as against the expectation of over 100K was definitely better. Asian stocks gained so did Indian stocks. CRB commodity index is showing a clear uptrend and gold is down. Sanghai steel prices touched upper circuit. Next whole week there is no major primary data due. So expect a short yet firm rally along with profit taking. Move into index majors where exit will not be an issue.
|Posted by EJ on August 30, 2010 at 3:05 AM||comments (0)|
Yes, that is what some of the economist predict and presented their research work on the sidelines of the central banker conference in Wyoming. They have analysed the data of last 15 post eco-crisis and came to this conclusion. The concern is there in every quarter and central banks will run out of ammunition soon as the fiscal situation is not good enough to continue the stimulus worldwide. To cut the story short, it needs other effort to keep the recovery on track as Mr. Bernake put it ...Read Full Post »
|Posted by EJ on August 26, 2010 at 12:02 AM||comments (0)|
Last night's price action in the US stocks have more to do with tech trader short covering rather than the fundamental boost. The data was as weak as expected and may continue to remain so for this quarter. Mkt will remain choppy untill next set of data comes out in black or white i-e we r talking about a recovery or continuation of lower trend. Asia mkts just tracked the US mood and shorts were covered. However if one notices the lack of strength in commodity basket , recovery app...Read Full Post »