Investing in what when inflation is running crazy.
Stocks ,commodities,real estate.
Which is better?
What is the best?
Investors are scratching the head,
Stocks have lost their glitter. Wall street, Shanghai and Mumbai are very weak.
Commodities find a safe niche,and probably the best bet.
It also has its shortcomings.
Today gold is trading at 930$,in March it was 1013$,last week it was 880$.
The difference is too high.An average investor finds it hard to combat.
Land is a good buy.
It has become too expensive
Development land is beyond the reach of the common man.
Building costs have escalated in geometrical progressions.
Agriculture land is affordable.
The returns they fetch is not encouraging.
Liquid cash is secure.
It has to dance to the whims and fancies of the ever changing dollar.
Have a smattering of all in your basket of investment, dear investor.
Success is yours.
Price of crude oil is a sensation.
It has become a cynosure of all eyes.
As it rises ,it shoves down stocks and pulls with it commodities like gold.
Its movements are closely monitored
Wall street, Mumbai and Shanghai,affected by its up and down movement.
The weak dollar and geopolitical activity in Iraq,Nigeria,are responsible for this erratic trend.
Inflation is staring hard.
Commodities are in upswing.
There is lot of deployment.
There is still more wage cut.
India’s Reserve bank has increased the CRR.
Fed is aiming, but caught between housing slump and weak dollar.
The song in Sound Of music is well remnant of this situation
“How to solve the problem Maria?”
Malaysia Is introducing windfall tax,to fill up its treasury.
The hike in gasoline by 41% has created much discontent.
Every commodity sees a surge in its prices.
Right from vegetables to cement there is a steep rise.
Malaysians have started feeling the pinch’
Stocks are trading low.
Now the new entry windfall tax.
Oil Palm plantations in Peninsular Malaysia are to pay 15%,over and above CPO price-2000RM.
Price of CPO-3500RM
FIXED pRICE -2000RM
Tax 15% of RM 1500=225RM
The plantations paid cess last year to supplemnt cooking oil prices.
Now there is no scarcity in cooking oil supply.
The rise in cooking oil price remains the same
Will the government pass shotfall benefits to plantations ,if the CPO trades below 2000RM.?
Strange are the ways of the governments.
The Indian Finance Minister has asked the poor not to go to money lenders. If they approach the private financiers, then he ,in charge of the finance portfolio is a failure.
Well said,Mr.Palaniappan Chidambaram.
Admitting one’s defeat needs courage and grit.
The Indian FM has almost accepted his shortcomings,though belatedly.
IS the honourable minister not aware of the interest charged by the private bankers?
The poor run from pillar to post seeking financial assistance.
Having been turned down by the banks, they resort to money lenders.
The loan sharks charge abnormal interest. Some even collect interest for a day.
Getting money from such people is immediate, has less procedures,and saves time.
THe Indian FM has promised financial inclusion for the poor in the banks.
They will be charged 10% interest.Even this is little high.
I recollect,Bernard Shaw’s words
Lending money for interest is second to prostitution.
Inflation,Oil,Financials of the present day are like Mark Antony,Brutus, Julius ceaser.in the Roman era.
The economy of most countries are wrecked by these three ominous syndromes.
The world is perplexed. The sooth sayers of finacials are doomed.
Bernanke has bluffed, fluffed,all of us ,by spelling out that dollar is getting strong.
Asian stock markets are gasping for breath. Mumbai and Shanghai are going down the slide .
Can the Triumvirs be tamed down?
The Roman triumvirate sealed their own destiny.
Can we look forward for such an end to thes three life like caricatures?
I read the story of Midas when I was in my primary school.I used to read it again and again. I was flabberghasted, as how God could grant such a wish to Midas-turning everything he touches into gold.Finally his food also turned into gold.This is the moral of the story.
In Cameron Highlands, Malaysia,I saw the same course of action, though in a different comfiture.It is a retreat for the Malaysians. The weather is pleasant. The flowers beckons while we negotiate the cuves, The huge trees wave to us,as if they are giving a rousing welcome.This Is what I expected. This is what I enjoyed two decades back.
But ,to my dismay,all these fascinating pictorials are absent today.
As you reach KG Raja, you see no flowers, no greenery, but espy the poly sheets that cover the nursery. White sheets,scatterd all over.
Every single stem, every flower,everyshoot fetches money.The flora and fauna is grown in Cameron ,exported to Holland,Japan,Australia.
It fills Malaysia’s coffers,but drains the beauty of the land.
The dangling ,beautiful flowers are grown in Malaysia.
They are a feast to the eyes of Japanese, Australians.
True a modern Midas is in the offing
Gold Man Sachs Vice President,Hormats, has called for U.S global policy retructuring.He said U.S has to improve economically and should become a leader in crafting economic policies.
Mr.Hormats,first set your house in order.
It is easy to preach than to practise.
The housing bubble,the subprima crisis ,oil surge,dollar weakness,are all manipulations of certain self conceited group.
“We have to give ,if we want to get”is Hormats rider.
Everything is reciprocal in this mad, mad world.
The need of the hour is good governance,not rhetoric oration.
Eloquence in action not in speech, is the requirement of this era of financial turbulence .