D-Street as rich as India!
If you want to get a right perspective on how pricey the capital markets are, take a look at the Buffett Indicator. The key valuation indicator shows that Dalal Street’s total market capitalization is almost the same as the size of India’s GDP, which is definitely a cause for concern. Read more here.
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It’s a rebound, not a recovery
Raghuram Rajan opines that India is still in a rebounding stage and not recovery, as the economy is yet to reach its previous highs. Substantiating his claims, the former RBI governor uses two-wheelers and four-wheelers sales numbers to conclude that the demand from the lower middle class population is yet to pick up. Read his full interview here.
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Bitcoin eclipses Tulip mania?
Dutch Tulip bubble of 1636-37 was the first major bubble recorded in history, with the highest multiple (39.9X) of the underlying asset value ever. Bitcoin is not far behind with 3 boom and bust cycles in the last 10 years, 7x returns in the past 12 months with a market cap of around $650 billion. Read here to know why Bitcoin is unlike any other bubble we’ve seen so far.
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The ‘Big Bull’ just went light
Rakesh Jhunjhunwala trimmed his stake in two Tata siblings. After a 15X boom in the last decade, the ‘Big Bull’ decided to book profits, but only partially. Here’s more on what Jhunjhunwala has been up to.
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Taming the raging bull
Maverick investor Vijay Kedia, known for his bets on rather little-known stocks, says that the stock market has passed it’s ‘dust’ and ‘must’ phase and has now entered the ‘lust’ phase. During these indecisive times, this D-Street veteran advises investors to enter sunrise industries and exit those seeing sunset. Read here for Vijay Kedia’s strategy to fearlessly ride Mr Market’s dust-must-lust cycle.
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