Inflating Stocks!!

The World Equity Markers tumbled on slowing growth and inflation fears.

The Equity Markets have become too speculative, with wild movements becoming the norm of the day. Traders (speculators) can loose money very quickly.

Recently, the commodity markets have tumbled 30 to 40% within 1 month. More than a few large Hedge Funds have gone bankrupt, loosing 40 to 60% of their speculative portfolio value, (within 1 month), with losses amounting to over USD 5 Billion to individual funds.

There is a very large exposure of Hedge Funds to International Equity markets also. Similar collapse could be repeated in the International Equity markets, with “hot money” being flushed out of the equity market system.

This will also throw up opportunity for the astute.

Gold continues to shine and this will remain a good hedge against inflation, the falling value of the Dollar and rise in oil prices. Investing in Gold ETF (Exchange Traded Funds) is recommended.

India: Annual Budget was just awful. It will accelerate inflation in India. India’s true potential continues to remain unexplored. Yet another year lost. We are governed pencil pushing bureaucrats, with little understanding of the globally competitive environment.