iCharts Discussions

[ajayhkaul]

Guess what ? Just as we discussed this morning ....


In the opinion of one top UBS banker, Larry Hathaway, "...there might be some assets worthy of consideration-precious metals, for example. But other metals would make wise investments, too. Among them tinned goods and small calibre weapons."

[vinay28]

How about companies making beer and french leather?

[ajayhkaul]

Check it out ... there is some activity already into vice stocks

GMBREW
EDL

ConAgra has bought into ATFL of India, a food company

French Leather, Vinay ?

[vinay28]

Ajay, what do you expect a jobless guy like me to do in bad times?

There is one more possible investment. Tirupati is, from what I have heard, the largest supplier of human hair to some company making some products (soaps?) for a long time. With bad times approaching, the pilgrimage will increase! How's that investment if the company is listed, which I believe it is? Alas, I don't remember the name.

[ajayhkaul]

Hairy stuff ...try locating this company.

[vinay28]

Just remembered. It's protchem Ltd. But I think it is in bad shape.

Have a look at this link for Indian hair demand:

http://www.afaqs.com/news/company_briefs/index.html?id=51578_Growing+Demand+for+Indian+Human+Hair+in+Overseas+Markets

Of course, I am kidding about such investment

[ajayhkaul]

hair today , gone tomorrow

[ajayhkaul]

RK .... GUESS WHAT !

NEW YORK: Mega-billionaire Warren Buffett says his son, a corn farmer, would be a good replacement for him as chairman of his $245 billion investment giant Berkshire Hathaway.

Traders are becoming farmers and Farmers are turning to markets!

[ajayhkaul]

I guess we have digressed from the main subject , so let me reset and bring you this piece of info for your rumination : Will it affect India ? Sure it will .....

US official national debt exceeds $14.5 trillion and this past summer Congress gave the Obama Administration permission to increase the debt to $16.4 trillion.

US unofficial national debt, when you take into account unfunded liabilities and entitlement to US citizens, is closer to $100 trillion. by the end of this decade, US national debt will be about 150% of its GDP—about the same level it was after World War II.

With the price of gold having risen 500% in less than a decade, gold is screaming, “inflation ahead!”

How does the government and an economy deal with inflation? Inflation is dealt with via higher interest rates. The artificially low interest rate policies of the past few years will come to hurt US in the form of hyper-inflation and sharply higher interest rates.

Did you know there is a striking similarity between the years 1934-1937 and 2008-2011?

Look at these facts:

The stock market crashes in 1929. Eighty years later, in 2008, it does the same thing.

The bear market rally that started in October 1934 lasted until August 1937—35 months—and took the Dow Jones Industrial Average from a level of 90 to 185, a gain of 106%.

The Dow Jones then plummeted and didn’t recover until seven years later, 1944.

So similar it’s frightening: The bear market rally that started in March 2009 has lasted 32 months so far and has resulted in the Dow Jones Industrials rising close to 100%.

If the current bear market rally follows the same path as the bear market rally of 1934 to 1937, we have about three to six months left before the next phase of this bear market gets underway, ultimately bringing stock prices below their March 2009 lows.

This time around the after-effects of the next leg of the bear market could be much worse than the Great Depression.

Comments ?

[rk_a2003]

[rk_a2003]

[ajayhkaul]

RK I was not comparing Farming and Trading.... just wanted you to know that someone (Buffet Jr) moved from farming to markets , as our own RK intends to move to farming

Markets: Lets see how it evolves ... surely we are interestingly poised. Rakesh J from bull to bear ? wow I missed that !

[vinay28]

Never ever listen to Rakesh.

Are we again going to make a gardener as an advisor to the president? ("Being There")

[radaram]

hi, iam new to this but my view is market bottom out up to may mid, after consolidation six months

[vinay28]

Nobody can predict how the market will move. TA does help but when market moves based on events, it has a habit to deceive. We and the market know the news that is already out but we will never be able to predict what (good or bad) may happen in future and how much the market will move then.

The pessimist may say that no good news is expected and it can only become worse while the optiomist will say exactly the opposite, although there are hardly any optimist left in the present world (and, may be rightly so). I have a few thoughts to offer, particularly for those who are extremely bearish.

1. The dollar-rupee rate has gone down so much that nifty is already equivalent to 3900. With exchange rate expected to peak at 56-57 in near future, it will be equivalent to 3700.

2. FIIs have withdrawn a lot of money from our market in the last few months and such a weak rupee makes our markets very attractive to them, not to us.

3. I heard today that the debt yield is at 14% while rupee has gone down by over 16%, which makes another strong case for them to invest.

Having said this, I do agree that we do not know when FIIs will come here in a big way and after how much further fall in nifty.

Let's keep our fingers crossed and move with the market instead of taking any long term decisions based on our fears.