Bear Readings: US recession, Potential FII outflow, Demat account growth
“If you’re worried about a recession, you might think about buying agricultural commodities,” Rogers said. “I suspect agriculture is going to do well no matter what happens to the world economy.”
A decline in crop yields because of droughts from Ukraine to Australia, combined with rising demand for biofuels, has spurred a rally in agricultural commodities that sent wheat to a record last month and corn and soybeans to multi-year highs.
Cotton, coffee and sugar may gain the most, he said, adding that he wouldn’t buy crude oil after prices rose above $100 a barrel last week, or industrial metals such as tin or lead because a slowing U.S. economy would curb demand.
Same old, same old.
- Economic Times: Potential FII outflow to send Sensex, rupee crashing
. . . a possible outflow of FIIs has a potential to send the benchmark Sensex crashing down to 14,000 points within a quarter, a report said today.
While strong inflow of funds from foreign institutional investors (FIIs) has been a reason to cheer, it could turn into a nightmare and if the global investors make a sudden exit with about 12 billion dollars within a quarter, it can send the bourses crashing by around 30%.
I think if we do have a crash, the cause is going to be something much different from what most people are focusing on - which definitely rules out FII flows.
- Business Standard: IPO frenzy sees slew of new demat account
Around 1.6 lakh new demat accounts were opened in the two depositories during the first eight days of January.
“Retail investors, who up till now had never looked at the stock markets, are making a beeline for demat accounts to invest in RPL’s issue,” said a broker.
OK - I am glad that the potential user base for Moneyoga continues to expand at a rapid pace. But there is something about this retail IPO/demat mania that feels bearish.
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