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Though power reforms are the most important item on the government's agenda, it often leads to face-offs between the Centre and states.
Though the market has gained 30 per cent in one month, don't get carried away and bet your shirt on further short-term gains.
Expect markets to remain volatile as the poll dates come closer as well as if uncertainty prevails post-May 2009.
After the collateral debt obligations crisis, all the other 'quants' have been lumped together as fast dancers who do amoral complex things. This is an understandable perception, but unfair.
The worst of recession could coincide with the run-up to the elections.
With growing concerns over global economic growth and further cuts in earnings estimates, a recovery in markets is not expected before end-2009.
While third quarter results do not reflect it, the sector's reluctance to cut interest rates points towards either high NPAs or wrong strategies.
Ratios such as CAGR, PBV and PE of Sensex can help in investment decisions.
This episode showed the maturity of Indian markets. They reward transparency and punish the lack of it.
Despite a gloomy macroeconomic environment, 2009 is unlikely to be as bad as the previous year.
Well-timed global counter-cyclical measures may mitigate long depressions
Use the SIP method instead of a 'wait-to-invest' policy.
The sheer speed of the decline could help revive demand and clean up the market quickly.
In the next 12 months, most sectors are likely to suffer.
Near the bottom of bear markets, broad buy signals are generated by several rules-of-thumb. Those check out positive. The first buy signal is that the earnings yield is higher than the yield from risk-free instruments.
Stick to disciplined investing. Do your homework thoroughly before committing your funds or you will be speculating. This is not advisable on both counts of managing risk and enhancing returns. Preferably, add companies that are leaders in their respective businesses. The companies should have reasonably decent prospects, sound management and strong entry barriers, apart from healthy financials that will help them tide the current rough patch.
Keep a war chest ready to take advantage of the likely dips till the general elections.
There are of course, other ways to win elections including intimidation of voters, gerrymandering, fiddling electoral rolls, booth-capturing and other creative forms of rigging.
The declining sugarcane acreage and the resultant lower sugar output may be supportive of firm sugar prices. However, there are other reasons that suggest that the sugar pill may not be as sweet as it seems.