It was one of Murphy’s laws at work in my personal life and the Indian economy in 2011: everything that could go wrong, went wrong. keeping my personal life aside (because I am not sure people wants to read that,even I am not sure I want to read my dairy again in my life )but speaking about Indian Economy,I am sure my clients and students with many of my self proclaimed economist friends (like me) would like to read. Ok let us see some of the economic events and then see some general events which are close to heart of the common man.
Shock market(Stock Market)Inflation, high interest rates, costly fuel, falling industrial output, serial scams, weak rupee, government indecision, the list could just go on.In one year stock market crashes more than 20%, almost every mutual fund is giving negative returns.Let us see some of the events which affected the market in year 2011.1. Union budget 2011Market responded positively as Finance minister's commitment to restrict fiscal deficit to 4.6%. many of the stocks were at 52 week high (looking at time span of one year from jan 2011 to dec 2011).thanks for increasing government expenditure delay in 3G auction and food security bill .The fiscal deficit of India is nowhere near 4.6%2.Gold BullSince childhood we firmly believed "high risk high return"but the Irony is that Gold is most liquid and risk free asset and returns for the year 2011 are 40%(more than any other asset class).It is work of economist to find out reason after thing happened.now if you an find it out that why gold is up by 40% then you are also "The economist"
3. continuous rate hike D.Subbarao, the person whom everyone must have criticized atleast once in a year,thanks to 3% rate hike in a year but even then it could not ease the inflation 4.American Debt What happens when the biggest country which is considered to be most safest struggles for taking more loan , any by taking more loan it becomes more risky, and when credit rating agency tells them that you are more risky now, the CEO have to resign, and we say it's democracy in America5.Europe Debt crisis What happens when some kid takes loan and hides it from our parents, simple yaar Dad have to pay it,but kid gets some punishment, same things are going in Europe , Angela Markel (mom of Europe) and Nicolus Sarkozy (Dad of Europe) trying to cover up the matter 6.IIP fall Industrial output of India has decreased due to all the above conditions prominent among them is less demand and high cost of borrowing7.Pledged Share sell off Share is also a type of asset,and any asset can be kept as guarantee, so as to take loan shares were pledged and then the share prises fell due to macro economic conditions, banks asked for more assets promoters could not give it, so banks sold all the shares this created panic in the market.
To close my economic event dairy I want to end with the saying by legendary investor Sir John Templeton "bull markets are born in pessimism, grow on skepticism, mature on optimism, and die of euphoria"
Not let's come to General Events of 2011
if I go no telling then it will be 100's of pages , but to speak of some special here are some
1. The 2011 end times prediction made by American Christian radio host Harold Camping stated that the Rapture and Judgment Day would take place on May 21, 2011 and that the end of the world would take place five months later on October 21, 2011, but fortunately nothing happened like that now the doomsday is somewhere in 2012. Please wait till my next year dairy.
2. In 2011 many People including me won 1500000000000 Rs. from bill gates/AOL/Microsoft but never received the money.
3. if you send the SMS that Uninor is Pakistani company the respective service provider will give you 10 Rs talktime, which no one ever received .
4.THANKS TO YOU I have learned that my prayers only get answered if I forward an e-mail to seven of my friends and make a wish within five minutes.
5. Due to all these things whole India without even knowing what LOKPAL bill is started supporting it only by considering that it will reduce corruption.
6. facebook became a too of Viral Marketing and TV became a tool of social Marketing ,even facebook became tool of Publicity . here only I discovered( which is false) that Indira Gandhi is married to a Muslim.
There are many more things which took pace in 2011, like India won World cup, India lost its position in First 10 Capital markets by Market cap.
and the list goes on , sorry got to go ,have loads to share but then time is a constraint
will catch you next year. wish you a very happy new year
Shock market(Stock Market)Inflation, high interest rates, costly fuel, falling industrial output, serial scams, weak rupee, government indecision, the list could just go on.In one year stock market crashes more than 20%, almost every mutual fund is giving negative returns.Let us see some of the events which affected the market in year 2011.1. Union budget 2011Market responded positively as Finance minister's commitment to restrict fiscal deficit to 4.6%. many of the stocks were at 52 week high (looking at time span of one year from jan 2011 to dec 2011).thanks for increasing government expenditure delay in 3G auction and food security bill .The fiscal deficit of India is nowhere near 4.6%2.Gold BullSince childhood we firmly believed "high risk high return"but the Irony is that Gold is most liquid and risk free asset and returns for the year 2011 are 40%(more than any other asset class).It is work of economist to find out reason after thing happened.now if you an find it out that why gold is up by 40% then you are also "The economist"
3. continuous rate hike D.Subbarao, the person whom everyone must have criticized atleast once in a year,thanks to 3% rate hike in a year but even then it could not ease the inflation 4.American Debt What happens when the biggest country which is considered to be most safest struggles for taking more loan , any by taking more loan it becomes more risky, and when credit rating agency tells them that you are more risky now, the CEO have to resign, and we say it's democracy in America5.Europe Debt crisis What happens when some kid takes loan and hides it from our parents, simple yaar Dad have to pay it,but kid gets some punishment, same things are going in Europe , Angela Markel (mom of Europe) and Nicolus Sarkozy (Dad of Europe) trying to cover up the matter 6.IIP fall Industrial output of India has decreased due to all the above conditions prominent among them is less demand and high cost of borrowing7.Pledged Share sell off Share is also a type of asset,and any asset can be kept as guarantee, so as to take loan shares were pledged and then the share prises fell due to macro economic conditions, banks asked for more assets promoters could not give it, so banks sold all the shares this created panic in the market.
To close my economic event dairy I want to end with the saying by legendary investor Sir John Templeton "bull markets are born in pessimism, grow on skepticism, mature on optimism, and die of euphoria"
Not let's come to General Events of 2011
if I go no telling then it will be 100's of pages , but to speak of some special here are some
1. The 2011 end times prediction made by American Christian radio host Harold Camping stated that the Rapture and Judgment Day would take place on May 21, 2011 and that the end of the world would take place five months later on October 21, 2011, but fortunately nothing happened like that now the doomsday is somewhere in 2012. Please wait till my next year dairy.
2. In 2011 many People including me won 1500000000000 Rs. from bill gates/AOL/Microsoft but never received the money.
3. if you send the SMS that Uninor is Pakistani company the respective service provider will give you 10 Rs talktime, which no one ever received .
4.THANKS TO YOU I have learned that my prayers only get answered if I forward an e-mail to seven of my friends and make a wish within five minutes.
5. Due to all these things whole India without even knowing what LOKPAL bill is started supporting it only by considering that it will reduce corruption.
6. facebook became a too of Viral Marketing and TV became a tool of social Marketing ,even facebook became tool of Publicity . here only I discovered( which is false) that Indira Gandhi is married to a Muslim.
There are many more things which took pace in 2011, like India won World cup, India lost its position in First 10 Capital markets by Market cap.
and the list goes on , sorry got to go ,have loads to share but then time is a constraint
will catch you next year. wish you a very happy new year
