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Repo Rate and Policy Tone Maintained at 6% and Neutral Respectively

Dec 6, 2017

2:05 pm

The Reserve Bank of India today decided to keep the policy repo rate unchanged at 6% in an “effective” 5-to-1 vote. 5 voted for status quo, while Dr. Ravindra Dholakia voted for a 25bps cut. The MPC maintained its neutral stance on monetary policy and achieving a medium-term target for CPI of 4% ± 2%,…

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Where’s the Money?

Nov 27, 2017

2:34 pm

“I have a high tolerance for pain” – Elon Musk Elon Musk’s quote has relevance to this week’s commentary. There’s been an ongoing debate about index valuations and forward return expectations. To gain some insight, we study the past 8 years of index returns versus the rest of the market, and put to test the…

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Return of the Dark Knight

Nov 13, 2017

1:12 pm

“It is dangerous to make forecasts, especially about the future.” – Yogi Berra The Dark Knight for the markets – crude oil – has risen, after a roughly 3 year hiatus. Crude has been, directly or indirectly, a contributor to every major recession going back to 1973-74. The situation today is evolving into a geo-political…

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Lame Ducks to White Swans

Oct 30, 2017

11:26 am

“Knowledge of what is possible is the beginning of happiness” – George Santayana A mosaic is taking shape, and a picture of an economy with structural low inflation, declining cost of capital, credit score based infrastructure, improving productivity, sound fiscal policy, credit multipliers, public investment multipliers, leapfrog technology, and healthy rural and urban consumers is…

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