Linkfest – 95

Monday, October 29th, 2018

Interesting commentary from across the web in the last few weeks:   MIB: Howard Marks, Oaktree Capital – The Big Picture Confessions of an equity analyst – Value Research The impact of NBFCs on fund flow to the economy? – Bloomberg Quint The $80 Trillion world economy in one chart – Visual Capitalist The next […]

The global tightening of financial markets

Saturday, October 20th, 2018

2018 has seen tightening in financial markets across the globe. This is having divergent effects on growth for different economies. This trend is in sharp contrast to to the synchronised recovery and easy liquidity conditions we were seeing in 2016 and 2017. The US economy continues to have strong momentum. The FED has gradually removed […]

How does the balance of payments affect demand?

Thursday, October 18th, 2018

How does a balance of payment problem affect demand in the economy? Neelkanth Mishra of Credit Suisse puts it in an elegant way in an interview with Ira Dugal. To paraphrase, if you think of it like a household budget: suppose a family has a consumption expenditure of Rs. 120 and an income of Rs. […]

RBI Annual Report 2017-2018 – Part 2

Monday, October 15th, 2018

The RBI Annual Report generally has a lot of interesting charts and data that give good insights into the state of the economy. In this second post, we cover five charts that we found quite informative from the latest report.   1. India’s Comparative advantage in exports A measure of a country’s export performance is […]

Quarterly Equity Valuations: October 2018

Thursday, October 11th, 2018

We take a look at equity valuations and find that they have moved into even more expensive territory. We use data from the NSE website starting from when it is available in January 1999 to look at the P/E Ratio, P/B ratio and the dividend yield of the index and compare it to past history.   Price to Earnings (P/E) […]

Linkfest- 94

Tuesday, October 9th, 2018

Interesting commentary from across the web in the last few weeks:   How high is EM corporate debt? – Advisor Perspectives Global cost of housing – Bloomberg Quint The framework of the MPC – Bloomberg Quint The bond market in a rising rate scenario – A Wealth of Common Sense The performance of PMS in this market […]

Is growth set to slow down?

Monday, October 8th, 2018

Over the last few quarters, growth in the Indian economy has been quite robust. The MPC, in its latest policy statement, talked about how growth “surged to a nine-quarter high of 8.2 per cent in Q1:2018-19, extending the sequential acceleration to four successive quarters”. But the macro environment has now changed substantially, throwing a cloud […]

MPC Meet: October 2018

Friday, October 5th, 2018

A few notes from the MPC statement and press conference today.   But first, a quick recap of the previous August policy and guidance: In the August meeting, the MPC was of the view that domestic growth momentum was strong and that the output gap was closing. However rising trade protectionism, geo-political tensions and elevated […]

Jeff Bezos Interview

Thursday, October 4th, 2018

Interview of Jeff Bezos at the Economic Club of Washington      Some of my key takeaways: Obsessive compulsive focus on the customer vs focus on competitors Using heart, intuition and guts to making decisions. Analytics and data are useful as well, but the most important decisions will be made with the former He […]

Monthly Market Summary: September 2018

Wednesday, October 3rd, 2018

We look at returns of various asset classes such as equity, debt, gold, crude oil and the Indian rupee in our latest monthly market summary.   We use data for these charts from   Global Equities October was a brutal month for Indian equities. As can be seen from the chart above, the Sensex on a […]