Salman Khan

Top Public Pension Funds Shun Solar Stocks

No doubt, solar industry is one of the sunrise industry. There will be some initial hiccups, but it will turn out to be a winner in long term as the world move towards green energy. If pension funds are avoiding solar stocks, then they gonna miss all the fun. Check out the following link for a really illuminating article on solar stocks.

www.stockozone.com/200...

Take Swine Flu Investing Advice with a Big Grain of Salt

While there is no doubt that the economy will suffer due to swine, it's not that money making opportunity will disappear altogether. In fact the outbreak will give rise to a new class of wealth creators, albeit for short period of time. check out the link for a complete list:

www.stockozone.com/200...

Surveying the Defense Industry

It seems that Boeing is facing tough times, contrary to your claims.

www.stockozone.com/200...

In Memory of Greg Newton

You will be missed. RIP

Thinking About the Next Six Months

I fully agree. TARP does not offers long term solution. It's only a patchwork in the system.

5 Reasons Why the $700B Bailout Could Translate to $250 Oil

Expect all of us to queue at bicycle store if oil touches $500 or even $250.

Don't Panic

Yes, Felix is quite true. Ever since Sunday, Paulson and Bernanke have been busy creating panic like situation in order to get the rescue plan passed without a proper debate. And now McCain has jumped into the bandwagon, though it makes case strong for his rival Obama.

Gold: The Commodity Bull Market Isn't Over

Precious metal has no tangible physical use except for jewellery in Asian markets. Yes, investment demand is there, but such a demand, backed without a simultaneous demand in physical form will be largely irrational.

Is the Commodities Bull Market Over?

You are quite right ....it was a classic case of an asset bubble. Though supply demand scenario was suuortive, it never called for a 50% or 100% jump in the prices of commodities. Now when correction has finally set in commodity space, I hope prices will begin to reflect the correct pricture. I am still not betting on a deep correction but a $147 level in Crude Oil was certainly not justified on the basis of supply demand fundamental.

Everyone Wants the Commodity Bubble To Be Pricked

I would like to clarify certain points:-

It's not that only those countries who are buying the commodities are feeling the heat.

Take the case of Russia and Saudi Arabia- Oil rich and flushed with money. A jump in crude Oil has ensured a steady climb in the amount of money supply in the commodity based economy leading to an ever more sharp jump in inflation numbers which is ruling way above the double digit. It's not that they are not worried.

Coming to demand side of the commodities. I accept that I havent much emphasised upon the agri/soft commodities much. The reason being, the two fastest growing economies i.e, China and India are still technicallly self sufficient when it comes to food grains and essential items. A good monsoon ensures the steady supply of agri products on annual basis in the Indian subcontinent, which in itself is home to a large proportion of human population.

In recent times, In India due to outsourcing euphoria, IT, ITES and Financial services industry had enabled a large section of population to spend. Mr. George Bush/Ms. Rice had exactly this particular section in mind when they pronounced their now famous comment regarding India and China.

Commodities like Crude Oil, Zinc and Lead are fluctuating as much as 8-10% in a single day which is pretty abnormal since demand and supply fundamentals dont change in a single day. Earlier, even if Crude Oil made a sharp jump, as in the case when Katrina happened, it retreated later when things normalised.

I still feel that the entire world is betting too much upon the China and India factor. Credit consumption is yet to take off. Six months of moderation and we will stop buying homes, cars, motorbikes. Jobs are being lost, wages have frozen. Though I am still optimistic about these economies, I feel that the world need to be patient.