Wrong Choice of Words; Queen: Under Pressure

Nish

In my earlier article on Jerome Powell and the FED, I wrote “when recession hits the US”. Wrong choice of words.  I meant if recession does hit the US in near future or in case of a prolonged global slowdown. EU has been a worry and if forecasts are to be believed, a growth of 1.5% at best and core inflation between 1 to 1.5% leaves real growth hovering close to zero.

Under Pressure is an epic song by one of the greatest rock bands of all time, Queen. Remember We Will Rock You. A song re-sung by so many bands and an ever green crowd favorite around the world.

And Freddie Mercury, not to be confused with the hideous Freddy from A Nightmare on Elm Street. Its nappy time in India and Freddy might just come in your dreams. Leave you with Under Pressure, one of my all-time favorites. To one of the greatest rock stars of all time, Freddie Mercury. Watch Bohemain Rashbody, the biographical movie on the rock band Queen. Rami Malek, well done.

Swachh Bharat Mission Economic and Social Impact

Nish

UNICEF published an interesting analysis of Swachh Bharat Mission. A household living in a fully open defecation free environment saves up to $780 per year i.e. Rs 54,700 as of today. Swachh Bharat Mission has been hugely beneficial to citizens in India and the momentum needs to be maintained. Further, LinkedIn published average savings per household due to GST implementation. The government needs to highlight the economic impact of its policies in India. A small silver lining for the government after the recent debacle in state elections. Time to regroup and think ahead for team Modi.

LinkedIn recently published that India ranks among the top 10 dangerous countries for journalists. This is disturbing.

WTI below $50 per barrel

Nish

Great news worldwide. WTI crude oil price is $46.64 per barrel which is great news for keeping inflation in check. Lets keep it below $50.  Shale gas revolution helped a lot in increasing supply and its time to make shale gas extraction more inexpensive and efficient.

Man of the Year: Jerome Powell

Nish

2018, Man of the year, goes to the FED chairman Jerome Powell. Sorry, it’s not Bradley Cooper and in fact, I am yet to watch A Star is Born. In spite of unwanted criticism, Jerome Powell is a hero. When he got nominated as FED chief I was a bit skeptical. FED maybe is the only reserve bank which has a history of nominating chairman who does not have a Ph.D. Jerome following Alan Greenspan footsteps does not have one. At the same time, Mr. Powell outshines as a leader for his outstanding vision, tenacity, fortitude, and acumen in guiding the US economy through uncharted waters in 2018. He has been spot on increasing rates to not only stem inflation but also to give space for monetary flexibility once the recession hits the United States in near future. US today has one of the lowest unemployment rates thanks to sustained innovation and prolonged low rates and along with rising wage growth, fueling inflation in the US to 2%. Back it up with a 24% increase in earnings in 350 S&P 500 companies compared to the previous year beating analyst forecast of 20%, according to WSJ. All are telltale signs of an economy heating up due to low lending rates and increased consumer spending. Continuing real negative interest rates would have further fueled asset prices resulting in an imminent collapse fulfilling the doomsday prophecy. Continue reading “Man of the Year: Jerome Powell” →

NIFTY 50 Index weekly options and Indian Bond Market

Nish

The national stock exchange (NSE) is launching Nifty 50 index weekly options. The launch comes on the back of success in launching weekly options in the equity derivative segment of NIFTY Bank index and the currency derivatives segment in the dollar-rupee currency pair. Read the attached report on Twitter here. Continue reading “NIFTY 50 Index weekly options and Indian Bond Market” →