morning thoughts...
Lord Saturn turns direct today , the positioning of Lord Saturn holds a significant importance. When Lord Saturn undergoes retrogression or turns direct, it not only affects the nature but affects our lives as well.
On July 21, 2014, Lord Saturn will turn direct into the zodiac sign, Libra. As a result, rainfall will resume in many areas of the country. Adequate rainfall is possible in the south-west regions. However, natural calamities are also possible in particular areas. North-eastern regions will also get sufficient rainfall. Gaining control over inflation will become difficult for the government. Prices of seeds may rise up. Crops and grains may get affected by the attack of pests. Alterations in power of some states could be witnessed at this time. Also, some leaders may lose their position or may face changes in it. Religious feelings will propagate among the people. Religious deeds and activities would be organized. During this time, disputed related to any religious matter is also possible.
Major effect will be witnessed on equity , commodity markets and personal horoscopes.
The markets continued its journey upwards as said and expected and is likely to continue the same in the coming sessions.
Technically the markets are still up and would face resistance at 7800 levels and find supports at 7600 levels on the nifty front.
Coming to the commodity markets one of the major investment assets where people park their hard-earned money, gold stands out as a favorite in India.
The history of rising gold prices has lured many people to invest in gold in the hope of even higher prices. We are not at all against gold investments. In fact, we believe they ought to be an important component of a person's investment portfolio.
However, we differ on one fundamental aspect about gold. And this is how you look at it and what you expect out of it. Gold, in our view, is not a productive asset. It does not create wealth. But it performs a very critical function. It helps to preserve wealth in times of distress. What do we mean by distress? This could mean reckless government policies, high inflation and unforeseen catastrophes. Yes, gold has always come in handy as an insurance against bad times.
The value of a nation's currency is a barometer for its economic health. It was almost a year back when rupee touched record lows of around 68 per dollar. The fall was a response to India's poor economy, further sparked by the Fed's move to taper its asset purchases. Since then, the rupee seems to have made a comeback. This could be attributed to an improvement in economic data such as shrinking current account, capital inflows and as well as proactive monetary policy.
However, at around 60.3 per USD, rupee is quite far from its fair value. The recent Economic Survey suggests that with consumer price index (CPI) and 2004-2005 as base, rupee is overvalued by around 12.3% in real effective exchange rate.
One should note that some of the key reasons behind the decline in current account deficit were restriction on gold imports and weak rupee (that promoted exports). An overvalued rupee amidst high inflation could be risky. It could negate the benefits from lower current account deficit. This is because a rising rupee will make India's exports less competitive. Since exports account for a major share in GDP, this could have serious implications for economic fundamentals.
Exports are our best bet as far as economic recovery is concerned. Amid high inflation, the consumption factor is unlikely to contribute much. With an ambitious fiscal deficit target and limited funds, expecting a quick turnaround in investment cycle will be naive. As such, there is a significant threat to economic recovery on the currency front. This is something that both the policymakers and investors need to watch out for. Especially with concerns like Iraq crisis and monsoon deficit threatening the recovery prospects.
Meanwhile, investors should shield themselves against any development that could adversely impact economic and market sentiments. And as far as volatility of paper currencies are concerned, there can be no better hedge than gold. Hence, we reiterate our stance that investors should have some part of their overall investment portfolio allocated towards gold.
www.astroeyes.blogspot.in
Friday's Wealth Creators
Tcs 2400 ca , idfc 160 ca , petronet lng 180 ca doubled the same day
Hitachi home rose 38 rs , J & k bank rose 66 rs , kotak bank rose 32 rs
Nifty rose 92 rs , bank nifty rose 157 rs , nifty 7600 ca rose 29 rs
Sell gold cracked 398 rs , silver 765 rs , copper 6 rs
Buy crude rose 67 rs
Lord Saturn turns direct today , the positioning of Lord Saturn holds a significant importance. When Lord Saturn undergoes retrogression or turns direct, it not only affects the nature but affects our lives as well.
On July 21, 2014, Lord Saturn will turn direct into the zodiac sign, Libra. As a result, rainfall will resume in many areas of the country. Adequate rainfall is possible in the south-west regions. However, natural calamities are also possible in particular areas. North-eastern regions will also get sufficient rainfall. Gaining control over inflation will become difficult for the government. Prices of seeds may rise up. Crops and grains may get affected by the attack of pests. Alterations in power of some states could be witnessed at this time. Also, some leaders may lose their position or may face changes in it. Religious feelings will propagate among the people. Religious deeds and activities would be organized. During this time, disputed related to any religious matter is also possible.
Major effect will be witnessed on equity , commodity markets and personal horoscopes.
The markets continued its journey upwards as said and expected and is likely to continue the same in the coming sessions.
Technically the markets are still up and would face resistance at 7800 levels and find supports at 7600 levels on the nifty front.
Coming to the commodity markets one of the major investment assets where people park their hard-earned money, gold stands out as a favorite in India.
The history of rising gold prices has lured many people to invest in gold in the hope of even higher prices. We are not at all against gold investments. In fact, we believe they ought to be an important component of a person's investment portfolio.
However, we differ on one fundamental aspect about gold. And this is how you look at it and what you expect out of it. Gold, in our view, is not a productive asset. It does not create wealth. But it performs a very critical function. It helps to preserve wealth in times of distress. What do we mean by distress? This could mean reckless government policies, high inflation and unforeseen catastrophes. Yes, gold has always come in handy as an insurance against bad times.
The value of a nation's currency is a barometer for its economic health. It was almost a year back when rupee touched record lows of around 68 per dollar. The fall was a response to India's poor economy, further sparked by the Fed's move to taper its asset purchases. Since then, the rupee seems to have made a comeback. This could be attributed to an improvement in economic data such as shrinking current account, capital inflows and as well as proactive monetary policy.
However, at around 60.3 per USD, rupee is quite far from its fair value. The recent Economic Survey suggests that with consumer price index (CPI) and 2004-2005 as base, rupee is overvalued by around 12.3% in real effective exchange rate.
One should note that some of the key reasons behind the decline in current account deficit were restriction on gold imports and weak rupee (that promoted exports). An overvalued rupee amidst high inflation could be risky. It could negate the benefits from lower current account deficit. This is because a rising rupee will make India's exports less competitive. Since exports account for a major share in GDP, this could have serious implications for economic fundamentals.
Exports are our best bet as far as economic recovery is concerned. Amid high inflation, the consumption factor is unlikely to contribute much. With an ambitious fiscal deficit target and limited funds, expecting a quick turnaround in investment cycle will be naive. As such, there is a significant threat to economic recovery on the currency front. This is something that both the policymakers and investors need to watch out for. Especially with concerns like Iraq crisis and monsoon deficit threatening the recovery prospects.
Meanwhile, investors should shield themselves against any development that could adversely impact economic and market sentiments. And as far as volatility of paper currencies are concerned, there can be no better hedge than gold. Hence, we reiterate our stance that investors should have some part of their overall investment portfolio allocated towards gold.
www.astroeyes.blogspot.in
Friday's Wealth Creators
Tcs 2400 ca , idfc 160 ca , petronet lng 180 ca doubled the same day
Hitachi home rose 38 rs , J & k bank rose 66 rs , kotak bank rose 32 rs
Nifty rose 92 rs , bank nifty rose 157 rs , nifty 7600 ca rose 29 rs
Sell gold cracked 398 rs , silver 765 rs , copper 6 rs
Buy crude rose 67 rs
