Thursday, April 30, 2015

Greece potential exit of Euro a political issue not economic

Europe and the US do not want Greece to leave the euro-zone, because if you do, other people will knock on the door of Athens – the Russians or the Chinese could be. This is a geopolitical chess game that is played in the moment.

I personally think that this is not so much an economic issue but a political issue.

Tuesday, April 28, 2015

Central Banks are clueless

There’s a big bubble in debt, in financial assets. But the biggest bubble is the belief that central bankers know what to do. They have no clue. That is the biggest bubble.

Friday, April 17, 2015

Monday, April 6, 2015

Japan monetary policy like a "ponzi scheme"

Abenomics is a failure. The real purpose is defeated. Income adjusted in dollar terms is tumbling, exports are down in dollar terms, while retail spending is low. Government debt is increasing and the Bank of Japan is keeping on buying bond. I see this like a ponzi scheme run by the government. 

While the Japanese market doesn’t attract me, international investors are bullish because in dollar income terms corporate earnings are improving.

Wednesday, April 1, 2015

Asset Allocation and Asian stock exposure

As an asset allocation I have 25 per cent each in precious metals, equities, real estate, and bonds and cash. This may not be the best of allocation. But it’s a disciplined approach. Today no one can tell where the world will go in the next three to five years. But with such asset allocation I am sure that in terms of purchasing parity I will be better [off].

I have been investing in precious metals. In fact, whenever there is a sell-off I had added them in my portfolio. Among equities, my investment in the US is near to nothing, though recently I have added some oil shares. My largest exposure is in Asia with investments in Vietnam, Malaysia, Singapore, Thailand and China. Six to nine months back I invested in China when valuations were really low and attractive. In 2012, I had invested in European shares. Some of my bond investments are in Latin America.