Sunder’s List: 29 Things…

Roundup: S&P -0.13%, Dow +0.05%, Nasdaq +0.07%, Gold $1251.70, London +0.30%, Germany +0.88%, France +0.55%. At pixel: Nikkei -0.72%, Hang Seng +0.22%

My #1 reason to elect Modi: if BJP is voted to power at the Centre, it will frame legislation for bringing back black money stashed in foreign banks. (DNA)

Mutual fund woes (Poor performance): In a year when Indian shares have hit record highs, fund managers are putting in their worst performance since the global financial crisis in 2008. (ET)

Mutual fund woes (Investor apathy): Equity assets peaked at around Rs2.5 trillion to Rs2.6 trillion in January 2008. The spiral of outflows that started then has continued till date at the rate of Rs.2,000-3,000 crore per month on average. Today, despite the markets recently hitting all-time highs, we are still seeing outflows. Total equity assets today stand at just around Rs.1.5 trillion, 17% of the total assets under management (AUM). (LiveMint)

Something to keep an eye on: Yields on Chinese government debt have soared to their highest levels in nearly nine years amid Beijing’s relentless drive to tighten the monetary spigots. (WSJ)

Goldman Sachs’s Top Ten Macro Themes for 2014 is out. Key point: The bank expects 15% plus declines in prices in gold, copper, iron ore and soybeans. (WSJ)

Analysts’ earnings forecasts are, on average, more than 50% higher than where they should be at the beginning of each year. Then, as reality takes hold, they mean-revert down to where they belong.

analyst revisions

First, they are almost always wrong. Second, forecasts for growth rates are also typically too high. Third, revisions to two-year-ahead EPS largely reflect the error to current year forecasts. (BI)

29 Dumb Things Finance People Say (BI)

Good luck!


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