Money Lying On The Sidewalk

The Indian markets are getting no love from investors right now. The country looks like a complete basket case. Inflation is high, interest rates are high, the currency is weak, current account and fiscal deficits are high, policy is in a complete state of paralysis, GDP growth is collapsing and the mood is completely gloomy. The Indian government is doing itself no favors and having shot itself in both feet is headed toward shooting itself in the head. More...

Enemy Of The State

Reserve Bank of India Governor Duvvuri Subba Rao is headed in the direction of becoming the enemy of the Indian state.
I've written on numerous occasions that monetary policy in India is excessively tight and risks severely constraining demand and decelerating the Indian economy. India's GDP growth rate has slowed to 4.5% per year in the most recent quarter than ended in December 2012. Headline inflation as measured by the Wholesale Price Index (WPI) which is the equivalent of a Producer Price Index (PPI) has remained stubbornly high but GDP growth has slowed from a 9% per year run rate to a 4.5% run rate.More...

Value Investing In India Is Dead !

Long live value investing !

Benjamin Graham said that in the short run the market is a voting machine and in the long run the market is a weighing machine. Unfortunately for investors, he did not define the duration of the short run and the long run.
Ben's basic premise was that over time the quoted value of a stock would reflect the underlying worth or the intrinsic value of the business it represented. More...