Saturday, February 15, 2014

Correction...


Article;
The worst isnt over for emerging mkts .

Comment;
Keeping in mind the monetary-policy and interest-rate trajectory (of the US too) correction in the stock-market makes sense... the glimmer of market, so far, was due to foreign investment, the liquidity flowing out of developed countries Central-Banks, of actually, Japan, the US and UK, Europe and China, too, actually, all the major regions. But some are some are now retreating… especially China and the US… China due to a debt hangover is expected to put breaks on easy liquidity… the US, too, is reducing the stimulus as unemployment levels come near the target, And, if it is INDIA how we can neglect the RBI’s role to stimulate growth by affecting the real-economy by lowering prices and increasing savings by offering higher real interest-rates… Therefore demand is going to be deterred by a less loose monetary policy regime… But, we still have loose money-policy in Japan and Europe. Nevertheless, the US will have (about) zero interest-rate as long as unemployment falls to 5.5%... Our domestic investors in INDIA are keeping their hands-off investment because they expect prices to go down due to restrictive money-policies in the major part o the world, and in INDIA, itself; including China and the US… three major economies… they are tightening the money… Investor will wait for more correction in the stock-market… because it will be most profitable for the investor to buy at lowest price and sell at the highest price… CPI is still above the comfort zone and the RBI will tighten till it falls 6%... The market probably will see a major correction…

No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...