Tag Archives: Forex Trading

High Yield Bond Market Pressure in 2016

High yield bonds (funded by multiple rounds of QE) will definitely put pressure on the global financial system this year. I believe over $1 trillion of QE went into energy related bonds (in US and Europe), and nobody had thought of $30 oil plus strong US Dollar. Euro and Rupee/INR will be at risk from a stubbornly strong US Dollar. Zero debt companies with substantial earnings in USD like Google, Infosys, McDonalds maybe the safest places in market in 2016. Stay long on USD. Energy and Materials stocks should be handled only by advanced traders. There maybe many sharp corrections and short-covering rallies.

The bond market is going to get ugly if there isn't a rebound soon Continue reading High Yield Bond Market Pressure in 2016

Indian Economy and Capital Markets Review- 04Dec2011

https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcR0XvuVpmwDLPjfH3JyErrFCuMNOE0kPLXSn6YWR-_5LsJ9NluzDI7PdKEIndia’s GDP for Q2 FY12 grew at 6.9% (Bloomberg estimate: 6.8%). Core sector growth for the month of October dropped to a six year low of 0.1%. The core sector has expanded 7.2% last year (October 2010).

India’s food inflation for the week ended November 19 declined to 8%on a week-on-week basis from 9.01% for the week ended November 12 while fuel price index increased to 15.53% (15.49% last week).

Indian Prime Minister Manmohan Singh failed to break an impasse with opposition parties and his own allies demanding a rollback on FDI hike in retail sector. And as of today, this new policy has been put on hold to get agreement from opposing political parties. Continue reading Indian Economy and Capital Markets Review- 04Dec2011