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.
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”
This article has first posted here on July, 18 2017. Sharing it again.
ETF also known as Exchange Traded Funds are on a meteoric rise globally. According to a report by PWC, ETF’s in the US is going to grow to $5.9 trillion by 2021, a whopping 23% cumulative annual growth compared to $1.6 trillion in Europe and $560 billion in Asia. ETF’s are passive investment products which track an index. Exchange Traded Funds are linked to different asset classes like equities and commodities. In the US, S&P 500 would be a broad equity index so an ETF linked to S&P 500 would replicate this index. Replication here means it would track the index. ETF would not outperform the underlying index i.e. S&P 500 but rather deliver similar returns. Let’s understand a few concepts here. Continue reading “Exchange Traded Funds: Rise of Passive Investing…Series Begins”
I have known Gayatri for sometime and when I came to know about her new book, titled Winning Strategies For Parents,
I knew I had to read it although I am a bachelor. To begin with, Winning Strategies For Parents , is a very detailed, insightful, comprehensive and hands on work on parenting your children until preschool.
Gayatri is brilliant in her research and her book, serves as a primer for parents in guiding them through the nuances of child’s development. I learnt different preschool philosophies governing children and the role they play in transforming children over the years. Born and bred on Montessori pedagogy as a preschooler, the book gives an excellent overview of other philosophies esp. importance of music and art in Waldorf teachings while the emphasis on parental involvement in Reggio Emilia. Its heartening to know that many preschool philosophies encourage creativity and collaboration right from the preschool stage which leads to a more holistic development of an individual as compared to philosophies which encourage undue peer competition. The book is serious read and best be read over a period of few days to in-digest the plethora of qualitative information on child’s development.
Gayatri, artistically articulates journey of child’s development with key milestones, obstacles and proposes profound strategies to overcome bottlenecks for a win win relationship between children, parents and education system.”
I am presently reading, The End of Poverty by Jeffrey Sachs which includes a foreword by Bono, one of the greatest musicians of our time. From I still haven’t found what I am looking for to Staring at the Sun, Bono of U2 group is a quintessential pop and rock musician, known among other things to be a great philanthropist and humanitarian.The End of Poverty gives an in-depth analysis of the various factors that led countries on different paths to prosperity and poverty. Jeffrey Sachs, an imminent development economist, shares both practical and pragmatic overview of international development and policies pursued in eradicating poverty. A detailed review would also come up. The other book which deals with eradicating poverty and on my reading list is Banker To The Poor, by Muhammad Yunus of Grameen Bank. Dr. Yunus, a Nobel Peace Prize laureate, revolutionized micro-finance in Bangladesh and is known as father of modern micro-finance. Continue reading “Book reviews coming soon…”
Recently, I read a Capgemini report which mentioned how the proliferation of technology helped generate jobs. ATM cards at one point of time where disrupters in the banking industry. There was a fear that they would take away jobs from tellers. However, opposite happened. As ATM usage became ubiquitous, tellers in banks were more productive in other aspects of service. Increased familiarity with the usage of ATM led to fewer footfalls in the bank of customers who only came to withdraw or deposit cash. It helped the bank to allocate resources more efficiently. In turn, not only tellers but other employees at the bank become more resourceful and hence more productive. The marginal productivity of the employees increased which helped bank branches to become more profitable through a more focused approach to discuss clients needs. This could be emphasis on personal investment products, better customer relationship management etc. This led banks to open more branches which resulted in the increased employment of tellers and other service representatives. It very difficult to envision effect of the emergence of disruptive technology over the short-term without looking at potential consequences over the long-term. One of the themes dedicated on this blog would be technology…
For those who have seen Matrix and Space Odyssey 2000, understand the disruptive power of AI. Artificial Intelligence might not be truly disruptive in the way it’s portrayed in the movies. Disruptive Power is the ability of a new technology to change the pattern of consumer behavior. The introduction of Smart Phones led to the disruptive technology in mobiles. Before smartphones, the primary purpose of mobiles was to talk with people but with Smart Phones, the slogan changed to…and you can also use it for talking. Smart Phones refined the way we interacted with others through social platforms or the consumer buying power. Apps were the catalyst through which consumers leveraged technology for their gratification. Continue reading “AI: Robo Advisors”