Green Shoots

The last couple of years have been a treacherous time in the financial markets. There has been no boom in any financial asset with the possible exception of US treasuries. Even there, the pickings have been slim.

I get a sense that we are starting to see green shoots in financial markets. I am not sure if the green shoots will transfer to the economy but I can see them in the financial markets for sure. My belief could be self serving and biased because I do want this period of pain to end and do want to see happier times. However, I've managed to come up with some reasons to justify my gut instinct. You can probably drill a million holes into each reason so if you are a pessimist, you can stop reading further. More...

Where Has All The Risk Capital Gone?

What does RISK mean? It means the potential for loss. Therefore an investment that is more risky than another is considered to have a higher potential for loss than the other.

However, in the case of financial markets a new dimension is added to risk. The dimension is that of perception. There can be and almost always is a difference between the perceived risk of an investment and its intrinsic risk. In the case of financial markets, risk has almost entirely come to mean the perceived risk of an investment rather than its intrinsic risk. More...

Investing In Indian Infrastructure

I have been a vociferous critic of India's infrastructure story. I don't deny that India has a chronic deficit of infrastructure and that investing in Indian infrastructure should be a lucrative opportunity. However, my concern has been with the manner in which investors got carried away by the Indian infrastructure story and with the financial shenanigans committed by India's so called infrastructure companies. More...