Recovery could take 10 years - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Recovery could take 10 years

Mar 9, 2009

British high on nationalisation
Asian markets have opened this week in the negative, led by losses in Hong Kong (stocks down 1.2%), Singapore (down 1.9%) and Japan (down 0.8%). Meanwhile, news of failure of financial companies and their nationalisation continues to flow in. In one such instance, the UK government will be raising its stake in Lloyds Banking Group to as much as 77% while guaranteeing the bank's toxic assets worth 260 bn. Nationalisation of Lloyds thereby leaves just Barclays and HSBC as the only major British banks not controlled by the government, following last month's bailout of Royal Bank of Scotland. "If we and other countries don't fix our banking systems we won't fix the rest of the economy," says the British finance minister. We won't disagree with him.

In the meanwhile, as the world economy continues to falter, a slew of dire predictions also continues to flow in. "I don't see the US economy getting better for a long time," says the legendary investor and commodities guru Jim Rogers. "I hope the US recovers in two years. That will be good news. It could be 10 years," says Rogers.

Pre-election rally in Indian stocks?
"A rally in Indian stocks will depend on the outcome of a general election in the South Asian nation this year as government spending is needed to bolster economic growth amid the global recession," says Morgan Stanley. While the BSE-Sensex had gained about 15% in the four months prior to polls during the previous four elections, the chance of a rally this time around seems low. This is given that there is immense uncertainty at the global level as also with respect to who will form the next government in India. Morgan Stanley adds - "Investors need to be most wary of a third-front government. The country has had three instances of third-front governments. The economic performance during those short-lived governments was not something to write home about."

Equitymaster requests your view! Post a comment on "Recovery could take 10 years". Click here!


More Views on News

India's Drone Revolution is a 4x Profit Opportunity (Profit Hunter)

Sep 30, 2020

My research on India's leading defence companies brought me to one major player in drone manufacturing.

The Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

More Views on News

Most Popular

Your Ultimate Guide to Penny Stock Investing

A useful guide for navigating the highly profitable world of penny stocks in India

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 30, 2020 12:27 PM