Commodities: The remedy to lower prices is lower prices itself
by Hitesh Jain May 04, 2016 14:59 IST
Markets have an uncanny habit of placing the cart ahead of the horse. The remedy to prolonged lower prices is lower prices itself. It is akin to homeopathy, wherein poison kills poison. Any structural problem needs a constitutional remedy. Swift recovery in prices without any shift in underlying fundamentals derails the much needed process of calibration in supply/demand equilibrium.
Crude Oil: Perception v/s Reality
by Hitesh Jain April 13, 2016 21:03 IST
The resurgence is attributed to production freeze by OPEC at January levels, wherein major producers concurred on the decision, while Iran was provided a special exemption to expand the output, considering that the Islamic Republic has just got the monkey of its back (free from economic sanctions).
Why buy Gold?
by Hitesh Jain February 04, 2016 17:14 IST
Negative interest rate policy adopted by ECB and BOJ clearly conveys that central banks are running out of ammunition in order to combat deflation. This is constructive for gold prices. We infer that such fragile economic landscape will eventually bring gold as an investment avenue back in the reckoning.
by Hitesh Jain September 18, 2015 14:48 IST
Fed’s inability to move on the rates portrays a complex situation. The problem with kicking the can down the road is that global economic conditions are not at all poised to improve for the next few quarters.
Fed up with the Fed
by Hitesh Jain September 10, 2015 09:15 IST
With the September US FOMC meeting just a week away, markets world over continue to factor in the repercussions of the September Federal Reserve meeting.
RBI Monetary Policy Review: Status Quo, Hope of rate cut prevails
by Hitesh Jain August 05, 2015 08:46 IST
Mr. Rajan reiterated that that money market rates have come down substantially, reflecting the series of rate cuts this year. Nevertheless, transmission of monetary policy is not evident in the bank lending rates. There is a lag of 3-4 quarters and it will take time for the effect to percolate.
Iranian straw can break the camel’s back
by Hitesh Jain July 09, 2015 12:04 IST
On Greece front, the crisis has escalated, wherein the nation has voted a ‘No’ in the referendum, rejecting the creditor’s demand of spending cuts in exchange of a bailout deal. European officials are not pleased with the outcome, as they wanted the incumbent Greek regime to conform to their demands.
Greek Drama: Unfolding of Drachma
by Hitesh Jain June 30, 2015 09:07 IST
In fact, ‘Grexit’ will be eventually construed bullish for the entire Euro region, as market participants will realise that departure of Greece implies no more bailout and no more debt burden. Forget repayment of loans, the stressed nation was not even able to service its debt. Time is of credence that bailout money has failed to solve the structural woes, unless Greece treads on the path of serious financial prudence, which eventually entails cut in fiscal spending.
FMC/SEBI merger: Marriage a saviour!
by Hitesh Jain June 19, 2015 10:26 IST
On the exchange front, stock and commodities exchange will have the luxury in encroaching each other’s domain.
Equity markets falling: Should you invest in debt?
by Hitesh Jain June 11, 2015 15:26 IST
Volatility in the equity markets makes it imperative to hunt for an avenue, which provides capital protection. Reserve Bank of India has already announced measures to lure retail investors towards government bonds. Retail individual investors would be provided direct access to both primary and secondary market platforms without any intermediaries.