In several articles that I have written in the recent past, I have maintained my bullish view on gold for different reasons. Gold price trend as compared to real interest rates is yet another indicator of bullish times for gold in the coming years. The real interest rate here is the 5-Year Treasury Inflation-Indexed Security. The chart below plots gold…
  Guest Article From Frank Holmes, CEO Of U.S. Global Investors   The last time gold had a quarter this strong, Ronald Reagan was a year into his second term as president, the Soviet Union was taking its final gasp and the U.S. was still reeling from the Challenger explosion. In the first quarter, the yellow metal rose 16.5 percent,…
In simple terms, money velocity is the number of times one dollar is spent to buy goods and services per unit of time. Therefore, if the money velocity is increasing, more transactions are occurring between individuals in an economy and vice versa. Considering the purpose it serves, money velocity is a good indicator of real economic activity. The key reason…
The banking sector stocks in India have been depressed in the recent past and this has been as a result of several factors including rising NPAs for public sector banks and sluggish economic growth impacting credit growth. However, I see this weakness in the banking sector stocks as a good opportunity to consider exposure to quality banking stocks in India.…
Sunday, 03 April 2016 00:00

Can “Make In India” Make India?

Under various nation-building initiatives undertaken by the new government in India, the “Make In India” campaign has hogged limelight and there is a sense of optimism that it can trigger manufacturing driven growth. However, I am sceptical about the impact the manufacturing sector can have on the country’s exports and GDP growth. This article explains the reason for my scepticism…
Continued weak recovery in major industrial economies and softer growth prospects for the People’s Republic of China combine to slow growth across much of developing Asia.     This article was first published by the Asian Development Bank (www.adb.org)
Analysis Overview – In the period 1980 to 2015, the dollar has lost 65% of its value with $1 of 1980 worth just $0.35 cents in 2015. One of the key functions of money is that it’s a store of value, but I am of the view that the dollar will never be a store of value again. The chart…
On March 31, 2016, the World Gold Council published a market update - Gold in a world of negative interest rates. The update provides some excellent information on how a significant portion of government bonds are trading with negative yields and presents a case for increasing investments in gold. The chart below that is sourced from the same report puts…
China’s manufacturing and non-manufacturing PMI data for January and February 2016 indicated freefall in economic activity and global financial markets were under stress at the beginning of the year. However, PMI data for March 2016 serves as a breather for policymakers and investors globally. While several concerns sustain for China’s economy (swelling debt and potential banking sector crisis), the latest…
  Growth is slowing across much of developing Asia as a result of the continued weak recovery in major industrial economies and softer growth prospects for the People’s Republic of China (PRC). This will combine to push growth in developing Asia for 2015 and 2016 below previous projections, says a new Asian Development Bank (ADB) report. In its new Asian…