“What’ s the difference between 9% Gross Domestic Product growth and below-6% where we are now? About 30 million jobs that won’t be created, FICCI officials said. In a country that has 13 million young people come of working age annually, that shortfall matters. Goodbye demographic dividend, hello demographic disaster.”–wrote Paul Beckett in India Real Time
Bond investors therefore should favor quality and “clean dirty shirt” sovereigns (U.S., Mexico and Brazil), for example, as well as emphasize intermediate maturities that gradually shorten over the next few years. Equity investors should likewise favor stable cash flow global companies and ones exposed to high growth markets. Investors in general, however, will be hard pressed to repeat the rather right-tailed performance of the past 30 years, a whale rather than plankton-dominated era based on excessive credit expansion. Deleveraging economies and financial markets present a different and lower returning kettle of fish than did recent credit-dominated decades.-wrote Bill Gross in his letter to investors
Overhead on Twitter:
Question:I have heard that DLF and Unitech belong to Gandhis. Is that true ?
Answer by Dr.Subramaniam Swamy:Vadra has a big stake
“Its a wake-up call, a shock.But it could be predicted considering that there is no positive news or action from the government.It reminds me of the crisis India faced in 1990-91.It (government) needs to change its thinking that India will grow at 6-7%, whatever happens. That is no longer true. Retrograde amendments, delay in policy making, telecom spectrum pricing—there is virtually something of concern across every sector causing negative perception. It’s time for reform.”–said Harish Mariwala, Chairman of Marico Ltd reacting to the poor GDP numbers
“If you followed rigorous accounting norms, you could have even seen negative growth in quite a few companies’ earnings.On reported numbers, corporate earnings could grow 10-12% at best this year. But I would advise investors not to be misled by reported earnings. Net profit can be anything, EPS can be anything, but free cash flows don’t lie. Check the free cash flow, and you will know the financial health of the company. Cash is king, P&L is just an opinion,” says Anil Singhvi, Chairman of Ican Investment Advisors