Mar 9, 2009|
Recovery could take 10 years
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."
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407