Friday, March 2, 2007

A leading Value Investment firm says :


The World Equity Markers tumbled on slowing growth .
and inflation fears.

The Equity Markets have become too speculative, with
wild movements becoming the norm of the day. Traders
(speculators) can loose money very quickly.

Recently, the commodity markets have tumbled 30 to 40%
within 1 month. More than a few large Hedge Funds have
gone bankrupt, loosing 40 to 60% of their speculative
portfolio value, (within 1 month), with losses
amounting to over USD 5 Billion to individual funds.

There is a very large exposure of Hedge Funds to
International Equity markets also. Similar collapse
could be repeated in the International
Equity markets, with "hot money" being flushed out
of the equity market system.

This will also throw up opportunity for the astute.

Gold continues to shine and this will remain a good
hedge against
inflation, the falling value of the Dollar
and rise in oil prices. Investing
in Gold ETF
(Exchange Traded Funds) is recommended.


India: Annual Budget was just awful. It will accelerate
inflation in India. India's true potential continues to
remain unexplored. Yet another year lost. We are governed
pencil pushing bureaucrats, with little
understanding of the globally competitive environment.

Disclaimer:

This blog and the opinions/break- outs mentioned therein are for informational purpose only and not a recommendation or an offer or solicitation of an offer to any person with respect to the purchase or sale of the stocks/futures discussed in this report.

I, Ayush Jain , do not accept any liability arising from the use of this blog. The recipient & reader of this material should rely on their own investigations and take professional advice. Subscribers and readers using the information contained herein are solely responsible for their actions and shall not hold the Author liable for any investment decisions/ actions or any other action (including abstaining from action) based on the Content provided. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The information provided is based on the theory of Technical Analysis. All levels mentioned, including break-out, target, stoploss are only informative. Trading and investment in stock market is risky and volatile.

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