This how the dominoes will fall. First, the Euro will devalue against the Sterling and the USD. Then the Pound will collapse against the USD. Next it will be the turn of Asian Exporters to sink, even India. All those expecting Rupee appreciation against the USD will soon realise that most of the services sector in the country will become non profitable at Re 40 to 1 USD. The financials of the services sector will worsen even further with and if, the Rupee v Dollar ratio goes below 40. Then expect lay-offs in BPOs and downsizing of IT services providers and hence more unemployment. A panicked GOI will go for a Rupee Devaluation to help exports, and the Greek tragedy will become an Indian tragedy. Once again nothing is safe; not sovereign debt, not commercial debt and certainly not equities. The fear trade is vastly expounded, as reflected by the massive unidirectional move in Gold. May 4th scare, which saw the Dow drop nearly 1,000 points before recovering, was just the beginning of the big shakeout coming… …before we begin a much happier climb to Dow 14,000. I've been warning for several months now—even as some people made a ton of money on the long-side of the market—a day of reckoning was drawing near. Technical indicators — from volume tracking to chart patterns to wave analysis — all foretell a brutal summer. And the worst is yet to come. Buy-and-hold investors will be brutalized and shocked by just how low the market falls by late July. The Dow's headed for 9,000 and you can either get run over OR go along for the ride. Long only investors can line up to be run-over. The extent of fall and extensive damage to personal NAVs will be seen in true measure over the next three months. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
No comments:
Post a Comment