Is Twilight the perfect love story?
Well, if you’re into cinema, then probably yes. But what about the ‘Low Interest Rates & Economic Growth’ one?!
Undoubtedly lower interest rates by central banks lead to major bull runs in both, the economy and the stock markets. The reasons being simple.
Loan rates go down, thus increasing consumption & investment, which reduce unemployment and thus increase income. Banks get flushed with excess liquidity. Demand for loans gets outstripped by supply of funds, prompting financial institutions to use their excess funds to invest. Returns on bank deposits fall, incentivizing the average Joe to…
Before we get into the details of the ‘Yen Carry Trade’ phenomena, let us understand what exactly is a safe haven asset.
Imagine your government just announced a Covid19 induced lockdown. What would you do next? Would you prefer buying a car during the lockdown or focus only on essential groceries? Assuming rationality among the readers, you’d prefer buying groceries over cars!
This is exactly what safe haven assets are. In simple terms, safe haven assets are those assets which do well even during a crisis.
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The US Presidential elections are always closely watched, not only by the American voters but by billions of people across the globe for one simple reason- the American government has the power to make or break critical international policies and trade deals.
The disintegration of the Soviet Union after the Cold War in 1991 led to the formation of a strong US-Indo friendship. Since 2000, India and the US have been strategic partners in USA’s war against terrorism, whereas in 2008 both the countries signed a Strategic Partnership Agreement and a nuclear deal. The current status of the US-Indo friendship…
What was USA’s initial plan to survive the Great Depression of the 1930's? Rebuilding all roads and pavements..
How did Germany recover from the World War 2?
By promoting a free market economy..
How did India recover from near-zero foreign exchange in the 90's?
Policy shifts towards globalization, liberalization and privatization..
How did the world-economy recover from the 2008 financial meltdown?
Pumping liquidity in the financial sector..
How do oil producers usually recover from falling oil prices?
Supply cuts..
How would oil producing countries react to the uncertainty of their oil-driven economies due to the Covid-19?
Let’s find out!
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One of the earliest examples of moats can be found around the ancient Egyptian castles, the Castle of Nubia being the most prominent one. China’s Forbidden City, India’s fortified castles in the states of Rajasthan & Uttar Pradesh, and the Tokyo Imperial Palace are other prominent examples of moats laid out around castles.
A quick question, how are these moated castles linked to the 21st century businesses?!
‘Moats’ is basically a metaphor used to describe certain characteristics of companies that protect it from invaders i.e. its competitors. In the medieval days, rulers would protect their fortified kingdom by digging up…
Undoubtedly, the recent Covid-19 outbreak has ruptured economies and businesses across the globe due to strict stay-at-home orders by governments.
During this crisis, there are few industries that have literally flourished in the past months. Not only in terms of stock price bounce backs, but in terms of business revival and future growth prospects. Some clear examples of these industries that make it to the headlines are FMCG, OTT services, Pharmaceutical, Agricultural etc.
But what about the industry segments that we usually don’t come across?
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A run of the mill post on any social media platform nowadays is that every 10 years, there is one such event in the global economy that carries the potential to cause widespread economic and financial damage. Be it the American recession of 1991 or the Internet-bubble of 2001 or the American housing bubble a.k.a the Global Financial Crisis of 2008 or the The Great Lockdown of 2020, actions in one economy can drag others into a recession. I have tried to scrutinize the reasons behind the two biggest economic crises ever erupted, their differences and commonalities.
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India’s Alibaba? Flipkart for consumer essentials ? Desh Ki Nayi Dukan?
With what was earlier rumored to be Akash Ambani’s mere ‘B-plan’, is now Mukesh Ambani’s biggest bet, which takes him away from his traditional Oil and Petrochem business. In the next 10 minutes, you’ll realize why this isn’t just a simple wager worth billions.
About 4 years back, RIL rolled out its own mobile network ‘Jio’ (Joint Implementation Opportunities), with little expectation in anyone’s mind that this would be Ambani’s next big thing. …
Chinmay Bansal
Complex topics, explained in layman language.
