Do markets really move together?

This post was co-published on capitalmind.in exploring whether global markets really move together… It was going so well. Carrying on from a blockbuster 2017, the NIFTY had risen almost 6% in 2018 by Jan 29th. And then the jitters started. By the end of the 1st week of Feb, we were down almost 2% for the year, after a budget that added Long Term Capital Gains taxes for Indian stocks after 13 years. As of this writing, the NIFTY is roughly back to where it started the year, with expectations that more volatility will follow. One way to look at the

Read more

Is the US about to sneeze?

At a glance A newsletter suggests that US markets currently are ripe for a huge correction – This is a result of the Fed’s Quantitative Easing programs that have pumped huge amounts of liquidity in the system – We look at historical relationship between market levels in the US with India and 3 other countries – Long-term (17 year) view suggests strong correlation between emerging markets but not as much with US and UK – However data from since the 2008 credit crisis paints a different picture – Three possible views and corresponding actions exist   “Oh…you know…everything is screwed

Read more