Another danger lurking around the corner
In this issue:
» Geithner puts the blame on borrowers, not regulators
» Surging stocks dent gold demand
» Oil to touch US$ 200/barrel in five years
» Hopes from India's new FM
» ...and more!
00:00 |
![]() |
|
What else could explain his putting the blame of the crisis on over borrowing of the US consumers when the fact remains that new, dangerous forms of lending were allowed to proliferate unchecked, with little or no regulatory oversight. Thus, if what Geithner is saying is indeed true then we have reasons to be worried as failure to pin point the problem area could lead to the menace going unchecked and posing a threat in the future as well. We hope the US Treasury Secretary's statement is just meant to not show his fraternity in poor light rather than a show of ignorance.
----------- Time is running out -----------
"Multi-bagger MidCaps", our latest research offering is now available to a privileged group of investors...
...and that too for Free!
To know more about the investment ideas discussed in the "Multi-bagger MidCaps" report and how you can get a copy of it for Free, click here!
-------------------------------------------------------
00:45 |
![]() |
|
So, what's his advice for dealing with unpredictability? "Stay optimistic...and be creative and open-minded," he says. "Things usually have a way of working out."
![]() |
Source: Trend |
01:36 |
![]() |
|
Given India's better situation than other world economies, investors do not seem to be in a hurry to go in for gold investments. But that has not meant that gold prices have fallen off the cliff. In fact, since the first week of March when stockmarkets across the world have surged, gold has also gained around 4%. This is against the common logic that when stock rise on the back of improving economic scenario, gold prices fall as investors take out money from the yellow metal and invest in stocks.
![]() |
Source: EIA, Gold.org |
However, the truth is that gold has held steady during this period as while stockmarkets have moved up on the back of easy liquidity, investors have continued to be bearish about the state of the global economy given that things have not really improved on the ground. The developed world continues to see tremendous pressure on GDP growth, the emerging markets have their problems on the exports front and unemployment is gaining ground everywhere. In short, the macro picture remains hazy and this has led to gold maintain its levels.
As for the future, we believe that given the shock investors have received over the last year, there will be a shift away from capital appreciation towards wealth preservation. This will define gold's movement over the next 5-10 years.
02:53 |
![]() |
|
Oil observers had identified the main cause for the earlier spike as a 'demand shock' from countries like China and India. They now believe that it is set to make a comeback. As per Daniel Yergin, a Pulitzer award winning oil commentator, "As the economy picks up, spare capacity will start to erode, and the oil market could tighten again in the first half of the next decade. The result could be another adverse shock to the US economy and global energy security."
T. Boone Pickens, the billionaire oil investor adds, "You're going to be back to $75 oil by the end of the year - and $200 per barrel within five years." It may be noted that Warren Buffett endorses Pickens' view although he has not made a specific prediction of this kind. Interestingly, Charlie Munger, his partner, believes that people will adapt to such prices.
03:47 |
![]() |
|
-------------Vote Here-----------------------------
Will the UPA government be able to deliver on its promises?
Click here to let us know.
------------------------------------------------
04:07 |
![]() |
|
04:32 |
![]() |
|
04:46 |
Today's investing mantra |
Today's Premium Edition.
Recent Articles
- All Good Things Come to an End... April 8, 2020
- Why your favourite e-letter won't reach you every week day.
- A Safe Stock to Lockdown Now April 2, 2020
- The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...
- One Stock that is All Charged Up for the Post Coronavirus Rebound April 1, 2020
- A stock with strong moat is currently trading near 5-year lows.
- Sorry Warren Buffett, I'm Following This Man Instead of You in 2020 March 30, 2020
- This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...
Equitymaster requests your view! Post a comment on "Another danger lurking around the corner". Click here!
1 Responses to "Another danger lurking around the corner"
Harbhan
May 26, 2009I do not see an another danger lurking around the corner, atleast in India. We are standing on our feet with head on the shoulder. An Economist as an A dministrator is a good sign for the country. God bless him(Mr.Manmohan Singhji)