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Showing posts from January, 2022

Economic Survey released before Budget : Points

Indian economy is expected to witness real GDP expansion of 9.2% in 2021-22. Agriculture and allied sectors have been the least impacted by the pandemic and the sector is expected to grow by 3.9% GVA of Industry (including mining and construction) will rise by 11.8%. Indian economy is in a good position to witness GDP growth of 8.0-8.5% in 2022-23. Foreign exchange reserves at US$ 634 bn on 31st Dec 2021. This is equivalent to 13.2 months of merchandise imports & is higher than the country’s external debt India’s CPI inflation at 5.6% Economic output surpasses pre-covid levels. Agricultural sector was the least impacted by the pandemic-related disruptions. Revival in the Indian residential real market in 2021 in terms of growth in sales, prices and new launches. Hotel occupancy rate has recovered substantially, reaching 56-58% in October 2021, from 30-32% in April 2021. Boom in software & IT-enabled services exports even as earnings from tourism have declined sharply...

Inflation

 Its a forwarded message received : Source unknown I nflation was never a Problem Before Like it is Now. It is at 40-years High of 7% - Nearly 4 times above the Fed's Target of 2%( Actual Inflation might Be in Double Digits Above 10%) Stock Market were Never as humongous overvalued before as they are Now. Refer Market cap/Gdp Ratio. Just like Mother Nature , Economics and Stock Market Should be Allowed to function freely. Else we see the Earthquakes and Tsunamis. FED cannot Print endlessly and Make people Rich, This will have an ugly End. Japan is 30% Below its 1989 Highs- More than three Decades Investors waiting to get back the invested money  !!  China is 45% below its 2007 Highs - More than a decade and Investors do not even have 50% Left of What they Invested  !!  If the above is not an eye Opener - I wonder What  !!  Those Who are arguing about the Bright Future of Indian Economy, potential Growth etc Bla Bla - Remember China and Japan were not S...

The new Silver Story

 Silver is coming into the limelight for the past few weeks. Three major fund houses started Silver ETFs after SEBI amended rules to introduce it. So will you make it as a part of your portfolio?  The prime objective of adding it into your portfolio is to diversify your portfolio and hence it should have lower correlation with other asset classes such as equity and bond. But.. Silver in the last 40 years generated negative annualized return of 1.14% in $ terms. Most of the rise are in lumps and is not constant. Silver has maximum drawdown of 90% in the past and annualized volatility of arounf 25%. What it means? It reflect high risk nature. Its very cyclical in nature and only very experienced investors or traders can understand the nature. So if you don't know, better avoid.