India: Stock Market Sideways, Economy Down

Well, you have seen the market action of the past couple of days…up through 2800 Nifty and then back down. When enough money is poured into the markets, sellers will come and clean up, and IT WILL NOT BE PRETTY.  I continue to be long Puts on Nifty at 2500 and 2600 strike.

I know a lot of people want to believe that there will be a recovery sometime this year. You must be listening to talking heads and politicians.  If you listen to these people and invest your money, then you deserve the shellacking your portfolio suffers.

I found the following useful:  India one of the Riskiest

CLSA said tax revenues were crashing, expenditure exploding as the government in a bid to win the elections had given “full bridle to its populist urges”.

The United States has pushed the “RED Emergency Button” and decided to print currency out of thin air to buy its own Bonds. The dollar plummeted, and there is this growing perception:  Dollar dead, Fed credibility shot.

Be very careful with your investment dollars.

And now, for the funniest line of the day: AIG chief urges return of bonuses

He told legislators he had asked staff at AIG Financial Products - the arm that brought AIG to the brink of collapse - to “do the right thing”.

If the staff knew what the right thing was, then AIG would not be in this mess.

Subscribe by RSS Subscribe by Email