GalaTime

• Bespoke’s elegant charts: Commodities Snapshot

Since its vertical move upward in April, Wheat is now up about 100%.

• FT Alphaville: What’s REALLY going on in equity markets

. . . in dollar terms, China’s Shanghai Composite is up 416 per cent since the beginning of last year, India’s Sensex is up 112 per cent, and Brazil’s Bovespa is up 133 per cent.

Traders know that both these incidents created bubbles that eventually burst. But they also know that in both 1998 and 1987, the euphoria created by the rate cuts lasted more than a year — plenty of time to make strong short-term profits.

According to Emerging Portfolio Fund Research of Boston, last week alone $5.53B went into emerging markets funds, the strongest inflows in almost two years.

“they are ready to pull their money out as soon as the bubble seems ready to burst”. One finger on the sell button, at all times!

• Business Standard: India lures most FII funds

India has emerged the biggest magnet for foreign institutional investors in Asia, attracting funds worth $4.1 billion since the US Federal Reserve’s rate cut on September 18.

“The bottom line is that all valuation work tells us we are late in the cycle, but a good momentum in the markets suggests that we have not yet reached the levels where nothing makes sense anymore. This is why we suggest combining valuations with our momentum indicators.”

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