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Showing posts from June, 2013

Gold - Conceptual Buying Stops

If Gold used to drop more than US$ 200/ounce, everybody rush to buy the metal and accumulate it. Yesterday it happened, but no one is tempting to buy it. Every body is in doubtful position, why? What is the reason for this? Meanwhile, everyone started even to sell it more and more. Now the reason is that, we expect the more to fall. The best reason is that Federal Reserve of  United States stopped buying Bonds . When it'as stopped it, the amount which is going to pump in the world market shrinks. Money which is pumped in the world market creates demand in the market. The money which is pumped is considered to be US$ 200 - 300 billion Dollars and if it get transferred to 10 different people/institution, it will be considered to create demand of USD$ 2000 - 3000 Billion Dollars. These money will be moved more to the stock market, commodity market and some will be used to buy manufactured goods. Gold, Silver , Crude oil and other metal prices increased to the maximum. The other r...

Invest In United States Dollar [US$] Now

Indian Economy is affected by Flu, as United States Management drives home after the shortening of Quantitative Easing[QE]. Not only India will be affected, all the Asian economy, Europe and other BRICS economy will be effected. Commodities will be sky-diving from the top and Dollar will be remain supreme. Other Currencies will also get the beating. India Rupee has reached the lowest of Rs. 60 to a Dollar. Still Indian economy will be weak, as its Current Account Deficits [CAD] will be rising. Indian Authorities always depend mainly on Foreign Institutional Investors [FII's] and Foreign Direct Investment [FDI]. Actually, no country must depend on FII's and FDI's as it can't be dependable. Investing in United States Economy is considered to be safe haven for all investor's including FII's and FDI's. If United States economy runs downhill, Investors will ply out, invest in other countries and make the stock market balloon faster. When they do investment th...

Indian Business Must Change

Joseph Schumpeter in his theory has noted that "Innovation in Business can create growth, employment and exports". What happened to Indian Business , now? The last two decades is considered to be performance management period. Now, Indian Business must re-invent or take the road downhill and live in paupers. Indian Business Market will be classified in three segments:- Business People who're living in cities with a population of over 100 million are called Developed India; Developing People, who're living in 6000 smaller towns and are numbered near to 300 million; and, the 700 million people who're living in 600,000 villages, named undeveloped India. The 1 Billion population who're considered to be Developing and Undeveloped are considered to be non-consumers in Business community. The reason being, they can't afford to buy the new inventions now due to over-pricing. Now Business Community in India must work for an affordable prices with new inven...

Gold To Reach US$ 1000

Gold is going to reach the base price of US$ 1000/ounce where we can purchase it if the price stabilizes there. Other wise it's going for a big blow. Every country is afraid that the US$85 billion bond buying of US economy is coming to an end. Second thing, People had shifted their investment from metal to Stock market as it's just started moving in Dow Jones Industrial Average [DJIA]. European stock market too started moving up. Gold backed exchange traded funds too started selling the Gold in the market. Since February 2013, the exchange traded funds had sold more than 550 tonnes of Gold. Indian Government too came up with the idea to curb Gold Imports and if anyone want to import, must advance the money to buy it. Before the Jewellery shops have to pay the amount after 6 months. Government of India had improved the import tax for Gold . Reserve Bank of India had told the rural banks to give advance loans on Gold , so from here Gold is not a near money now. Chinese...

Portfolio: greatsubin2012 - Writing.Com

Portfolio: greatsubin2012 - Writing.Com

Chinese Market is Slowing, Stop investing in Metals, Crude Oil, etc

Chinese market which was a booming market in 2008-09 is bearish right now as the Shanghai Composite Index has lost 20% of its chime, which's considered to be low in the past since 4 1/2 years. People Bank Of China consoled the investors, but the actual fact remain the same. People Bank Of China has increased the interest rate to 25%, which has send the red signal to all the investors. Now, buying money at this rate will not create more investments. The Chinese Government is curtailing the money in the market and will keep the tap closed. As the 25% interest rate will change the habit of the people, less spending and more saving. Money market will be freezed. Apart from that the Chinese Government Management want the Banks to clear the bad debts at the earliest. When cheap money were pumping in 2008-09, lot of bad debts had been created, which in future will create run on the bank. Apart from that, badly run banks must be pointed out and restructured for the future of China. If ...

FED Policy and the World Economy

Federal Reserve Chairman has already spooked out Management policy to curb the injection of US$ [Dollars] into the economy by six months. This will also change the monetary policies of different countries. Apart from that, all the monetary systems will take time to settle too. First thing is that the asset purchases come to its end. Inflation in United States is considered to be normal at 1.05% and in the year end it can reach 2%. Due to this, there is the change to have a change in interest rate fixation by Federal Reserve. American investors world wide had started to withdraw funds from the world market and started accumulating in the United States market. With this policy, we can see the gaps in the stock markets world wide. Heavy losses will incur too. Second option, is the unemployment rate of USA is to be seen. Fall in unemployment rate will trigger change in the above mentioned policies. It must reach between 6% - 6.5% from the current scenerio. But the exit policy will be at...

Business Case Studies

Business Case Studies will be done in two ways, a report made by individual or made by group. It must be done in a specific guideline. Introduction: The first step of Business Case Studies is to start with a good introduction/intro. Write a brief intro of the company for example: " Infosys, newly pioneered by Great Narayana Murthy, will he can do it? Then in the Business Case Studies about the company's environment. Second, we discuss about the infosys company current strategy/any companies strategy. Provide few recommendation on the intro part to rejuvenate the company, which will a gem to watch in your Business Case Studies . Part II: This section is known as "Strategic Section" in Business Case Studies . Analyze the nature, discuss, issues in the corporate level and with competitors, also do sector-wise analysis, by using SWOT analysis. To analyze the environment you can use "5 Forces Model" furnished by Porter. For corporate strategy, use the ...

Fed Stops Quantitative Easing [QE]

United States Federal Reserve Bank business Management is stopping the QE as it mentions that US economy is picking up the growth. American stocks are improving very fast, first time after the recession. When Federal Reserve management style is stopping the buyback of bonds which means more money will not be coming to the economy. Gold declined by 3%, Silver dropped by 6% and crude oil fallen by 3% in the commodity market. United States Dollar improved faster and other currencies will decline too. United States Bonds too started to fall and stocks will be picking up. Another thing which frightens the world market is that Chinese economy started to slow down. As it started to slow down, the demand for metals, crude oil, production decelerates. China, India, Brazil, Russia, Indonesia are affecting the heat of recession. They were considered to be economy of the modern era. Now USA, Europe will be taking the place of these economies. Chinese and Indian market is looking for some monet...

Indian Rupee at the lowest level, but still more to go

Indian Economy is ruled by Dr. Manmohan Singh, pioneer person who started the liberalization in India, Finance Minister P Chidambaram, Reserve Bank Governor and Raghuram Rajan, Advisor of UPA government plus the group of ministers who can take it to good heights. But actually now, we are getting low day by day. It's the mistake they did is that they stopped reforms in the midway and waited for the warning. Now, our exports are very low and imports are peaking up. Industrial growth are considered to be 2% and agriculture growth remains the same. USA, Europe and other advanced countries are just coming out of recession. The demand of the world is low but the price of foodstuffs in advanced countries are higher. India can take this opportunity and export half of the foodstuffs which is kept under the food security system. Right we have almost 39 million metric tonnes of foodgrain, which is rotting in the warehouses. As we export foodgrain, we will get a good chunk of dollars as f...

Why the countries are ending up in recession?

It's not because of the Government Management Policies but the policies are not reaching the poor and reaches only the high net worth individuals [HNI]. Their wealth has been increased from US$ 40.7 trillion to  US$ 46.2 trillion and it can be increased to about US$ 60 trillion in 2015. USA is having lot of investors and they make money by investing in stocks, bonds and real estates. But, the rich people are making money, the number of poor too are increasing. 80% of the people are having 20% of the resources to use and whereas 20% are amassing 80% of the global resources. This is unjustified. The poor are not even getting $2 a day whereas the High Networth Individual's [HNI's] earned US$ 5.5 trillions [US$ 550,000,000,000] within a period ranging from 2007 - 2012. At least the rich must part half of the money to the poor in charities so that they can have at least 4 basic things like food, shelter, clothing and education as the basic rights. This justification twists...

Sensex Will reap more if we stay Invested Till 21,500

This time the Reserve Bank Governor did'nt do the rate cut as expected by the market followers. This made the market to fall too. But, that Management move is a tactical move as Indian Finance Minister and the market will stabilize in between. Inflation is coming down. we've already cut 125 points since April 2012, so more cut will make to create more speculation only. Now the market will get stabilized, the more reforms will take place. Infrastructure must be developed according to world standards. Exports must improve, for that according to food security bill, we've almost 39 million tonnes of foodgrains which is lying rotten in the warehouses. Apart from that our warehouses are not up to the mark. So, half of the foodgrain stocks can be exported which will bring in more foreign exchange to our economy, which will improve the Indian Rupee [appreciate]. The next time the Reserve Bank Governor will cut the Bank Rate and which will take the sensex pass 21,000 mark. Bef...