Sunder’s List: No More Fear!

Roundup: S&P -2.30%, Dow -1.79%, Nasdaq -2.38%, Gold $1,343.60, London -0.64%. Germany -0.41%. France -0.50%.

Gartman: “We’ve traded gold for nearly four decades and we’ve never… ever… ever… seen anything like what we’ve witnessed in the past two trading sessions.” (BI)

It looks like the end of the “fear trade” met the end of the commodity “super-cycle.” The recent slide in gold was preceded by investors pulling out of “black-swan” funds. And the disastrous Chinese GDP growth of 7.7% (vs. 8% expected) put commodities in a tail-spin. The Chinese numbers are bad not because of the headline number, but because of what it took to get to that growth rate. The Chinese credit:growth ratio has plummeted from about 1:1 to 3:1 – that is, about Rmb 3 of new credit for every Rmb 1 of new growth. (FT)

Chinese Credit

On why gold jewelers are not in as bad a shape as the market thinks: Gold vs. Jewelry. And here’s some confirmation for that theory: Thrilled shoppers make a beeline for jewellery outlets in Bangalore (Hindu)

Does the RBI believe in its own inflation numbers? Should it? (CapitalMind)

Nearly a fifth of Infosys’s market cap is now represented by cash and liquid assets on its books. Will the real PE firms please stand up! (ET) [stockquote]INFY[/stockquote]

Good luck!

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