Are you reading 'lies' in the name of economic data?
In this issue:
» Zero returns on US stocks over next 10 years!
» Millionaire farmers in barren Rajasthan
» FCCB problems continue to haunt India Inc.
» Income inequality doubles in 2 decades
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That the Chinese government is known to be extremely secretive about sensitive economic data is a well known fact. In fact economic data coming from the dragon nation are at best taken with a pinch of salt. But economies like the US are known to be not just transparent but also the most regular and frequent dispensers of economic numbers. Hence Rogers' claims about the US government faking inflation and unemployment data come as a shocker. Meanwhile, Rogers also suspects that the US' debt problems are far more disturbing than that of the Eurozone. Hence the sugar coated economic data may help in keeping markets buoyant for a temporary period. But eventually the numbers will show their true colour.
We believe that not just the US, Europe or China, but investors anywhere in the world cannot rely too much on short term economic buoyancy. Also taking into account the fact that we live in a cohesive economic world, stress in one part is bound to have some impact n others as well. Hence instead of focusing on the lies that show up in the name of economic data on pink papers every now and then, a diligent and exhaustive analysis of businesses, managements and valuations can help you build a safer long term portfolio.
Do you focus on short term economic data for stock investing? Let us know your comments or post them on our Facebook page. / Google+ page.
01:15 | Chart of the day | |
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Data source: Economist |
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Now the worrisome part is that as many as 60 separate FCCB issues are due for redemption in the next 12 months as per a certain financial firm. And the redemption amount is a staggering US$ 7 bn. While most large caps would be relatively less affected due to their forex hedges, many small and mid cap companies are not well-protected and may face some serious issues in redeeming the bonds. Investors would do themselves good by scrutinising such companies well before investing in them.
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04:50 | Today's Investing Mantra |
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6 Responses to "Are you reading 'lies' in the name of economic data?"
Apares Chaudhuri
Dec 8, 2011The total situation is very confusing. Can't believe anybody, be it govt. or pundits.everyone is out to be-fool others. No one cares about others. The future looks doomed. Need of the time is a great social reformer,to help us out of this recalcitrant greedy world.
s.athmanathan
Dec 8, 2011Income inequality will persist as long as the unions and staff associations in the organised sector be it banks, industrial establishments or the central and state governments relentlessly fight for more wages and the government is only too willing to pamper them to implement the politicians' plans for the next elections.
This will go on reducing the rich poor gap still further. The bottom ten per cent then will fight for its rights and a social unrest will breed civil disturbances. The government is not ruled by far sighted people. There is too much democracy in India as the past Malaysian Prime Minister Mahathir Mohamed has opined and the clamour of the vested interest groups will not allow progress of any kind. More is not better should be our motto as far as money is concerned otherwise India will also face debt problems like the other more developed nations sooner or later.
dev golchha
Dec 7, 2011It was highly insightful to read your article named "Are you reading lies in ......economic data?"
Abhay Dixit
Dec 7, 2011Chinese Economy is growing at breakneck speed for so many years. Why is the Chinese Market no going anywhere?
Should the GDP growth not reflect in market cap?
Tomas Estrada-Palma
Dec 7, 2011No. I don't buy stocks at all. That would be like investing with the mafia.
Adi Daruwalla
Dec 8, 2011It is good that the farmers get (fair) and square money and work, and the companies buying lands dont cut corners. The saying goes If you want (fair) and square work, then dont cut corners. The politicians dont need to be middlemen and get cuts, they better break the log jam that is prevalant in parliament. Also after the farmers are paid fair and square there should be some rural financial advisory services that help them to reinvest in land and other financial instruments to secure their (farmers and their families) futures.