Category: Your Money

Sunder’s List

Mascotte Air India / Air India Mascot

Image via Wikipedia

Our banks are stuffed with loans to KFA, Air India and Microfinance that ain’t gonna be paid back (Govt to infuse Rs 7,900cr into SBI). In the US, the credit bubble bust is a gift that keeps on giving (Over 750 Banks at Risk of Failure over Next Two Years). In Europe, banks weren’t required to keep capital aside for sovereign debt (EU Sovereign debt was risk free, until they weren’t). Quelle Différence?

Mark your calendars: March 20 – Greece has no shot in hell of paying the 14.5 billion euro bond coming due, as things stand right now. (MarketWatch)

Avoidance of significant losses is generally worth accepting even long periods of defensiveness. The Baron Rothschild investment philosophy.

FT’s interactive PMI tracker: Every country tracked excepting China looks to have bottomed out in the last quarter. (FT)

Good luck!

Spotted: Some Golden Crossings!

golden cross • swirl

Image by origamidon via Flickr

The January rally has sprouted some Golden Crosses that investors should take note. A Golden Cross is when the 50-day moving average edges atop its 200-day moving average. It indicates that the intermediate-term uptrend has overtaken the longer-term trend. Here are some stocks that formed the Golden Cross the past month: CAIRN, PIRHEALTH, TATACOMM, WIPRO.

The GC marks the spot when a bounce within a bear market transitions to a bull market. All sustained bull markets, by definition, come with the 50 DMA above the 200 DMA.

It looks like the NIFTY has some ways to go before the cross, so its not time yet to break out the champagne. However, Hang Seng index (tracked by the HNGSNGBEES) seems to have crossed over to the bull camp.

Go Bulls!

High-Frequency Trading is Hitting the BRICs

in India, the BBC noted that nearly a quarter of all trading is now done using algorithms, a number that’s virtually assured of an exponential jump as well. The Bombay Stock Exchange, a $1.5 trillion marketplace, said it expects such trading to double over the next three years, which would put that nation on par with Europe and the U.S.

via High-Frequency Trading is Hitting the BRICs – Advanced Trading.

Sunder’s List

The US is expected to grow only 1.1% in 2013, says Congressional Body. (BK)

Low cost of debt (ZIRP) encourages substitution of labour with capital in the production process. Given that 60-70% of activity in developed economies is driven by consumption, this shift reduces aggregate demand as employment and income levels decrease. (FT)

Yale’s Swensen: Index Funds Best Plan for Most (Bloomberg.) May I suggest NIFTYBEES and JUNIORBEES?

Scary European unemployment chart du jour:

And a must see infographic.

Month Ender

What a January! One of the few in recent memory that ended up. NIFTY up a solid 11.2%, the Jr. NIFTY up 17% and Banks outperformed coming in at 25%

Major drivers were Greece, stabilizing inflation and RBI’s CRR cut. RelCap got a boost with Nippon Live pumping in close to Rs. 1,500 crores, SUZLON announced Rs. 2,000 crores in orders and the market seems to have shrugged off India Bulls Real Estate’s Q3 net being down 45%

The biggest winners were:

SYMBOL Change %
NCC 68%
LITL 58%

And the few losers of note were:

SYMBOL Change %
M&M -2%
TCS -2%
GAIL -3%
Good luck for February!