Wednesday, May 17, 2017
Tuesday, May 9, 2017
In India, if you have growth rate – and I am relatively conservative here, some people accuse me of being too negative of Indian economy – but I am saying if India can grow at 4-7 percent per annum for the next 20 years, then earnings in my view will also grow at 4-7 percent in some corporations that are well managed. They will grow at 12 percent, maybe 15 percent. In some companies that are badly managed, maybe they will not grow at all.
So, my view is simply based on simple economics and I am not an academic at an Ivy League university. I observe what is happening in the world. But simply based on a common man economics, I think India has a good potential and I believe that foreigners will come into the market near the top and that will be the time we will have to sell Indian shares to the foreigners who will rush into India because they think it is the new El Dorado.
Tuesday, May 2, 2017
We have a system in place that is based on fiscal and monetary policies, and laws and regulations, that favor the corporate elite, the largest corporations, the captains of finance, and the 0.1% in general, because they are the asset holders. This moneyed class will not give up its privileges voluntarily.
The privileged class will do everything in their power to keep these favorable conditions in place, which would include money printing in one or another form if there is a recession or if asset markets decline meaningfully.
I believe that an unstable system in which the majority of people lose out to the privileged few is simply not sustainable and will end either with a Bernie Sanders-type socialist gaining power or with the establishment of a dictatorship.
Tuesday, April 25, 2017
In Asia just about every market has outperformed the U.S. In Europe, just about every market has outperformed the U.S. measured in U.S. dollar terms. So, I think that the impact of an improving Chinese economy is being felt more in other emerging economies than say, in the United States.