The US Gives Thanks while Europe Worries

Nov 23, 2021

5:54 am

• Economic growth remains hot in the US, but worryingly it is causing inflation, which remains stubbornly high • Despite surging COVID infections across Europe and parts of the US, full-scale lockdowns are unlikely and any impact on growth should be “transitory” • Nevertheless, the fresh wave of infections in Europe has prompted some economists…

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The Valuation Dichotomy

Nov 17, 2021

5:39 am

Indian markets have witnessed a stupendous rally over the last one and a half years partly driven by the economic recovery post the pandemic led meltdown and partly owing to the optimism in investor sentiments. Nifty has returned more than 50% over the last one year with only two months of negative returns. With such…

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Inflation Alert – Fed Behind the Curve

Nov 16, 2021

4:45 am

After two decades of falling inflation, it is now quite understandable that central bankers are reluctant to acknowledge that we may have an inflation problem at hand. However, these are the same central bankers who negotiated the previous inflation challenge so ‘well’ that they had to spend the last 15 years trying to re-create it….

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Normalization Post Covid

Nov 11, 2021

10:20 am

Finally, the US Fed has turned towards the normalization of its economy. To stimulate the economy after the Covid outbreak, the US had increased the money supply by roughly 30% in less than two years. In its latest meeting, the Fed announced tapering of quantitative easing (QE) by USD 15 billion a month. At that…

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