Fighting evils...

Only few bears are the happiest among their fraternity because most of them too have lost heavily. Somebody made money in future shorting but lost in oil, gold as well as physical longs in stocks. If he is an equity player, it is just impossible to have zero exposure in any asset class and if yes then he can’t be a trader. Without assets backing nobody would step in to trade. Any way it is mass destruction in India and globally. With this the Govt plan to collect taxes is likely to be mission difficult which is making Govt to raise funds though international bonds. The third instalment of advance tax will be down by more than 50%. I think Govt will have re think very fast on the 15% short term capital gains tax in absence nay capitals gains left. Govt must replace capital gains tax to STT alone with little rise so that the adjustment factor for capital gains goes away for ever. China removed tax on shares to bolster the investments.

U S seeing end of its financial crisis with infusion of 700 bn USD, UK too acted to save their banking by infusing 87 bn pounds. Fed, China and UK agreed to cut interest rate. Japan is facing highest bankruptcies. Indonesia collapsed and so also Russia and Brazil. Now the fact remains that the outflow from these courtiers could be well over 100 bn usd which needs to find its place. Another CRR rate cut that too 50 basis point is definitely on card before Oct end.

Gold is rising as some money is getting transferred to gold. Gold is the perfect hedge for the hot money. But not all that all money can travel to gold. They will hold cash close to their chest and wait till the time the stability returns. They will re enter equity which is the only asset class which removes all the fat in shortest possible time and also helps to re gain due to higher risk higher return.


Mankind must remember that peace is not God's gift to his creatures; peace is our gift to each other