financial markets

  • The markets no longer mirror the underlying real economy but it reflects the mindset and the  prevailing sentiments of the investors. So increasingly markets are seen as becoming detached from the economy or what’s happening inside that economy. Take for example, the market rallies during the COVID-19 pandemic.  A time when most businesses are having

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  • ReIMAGINING the Economy

    Every human idea is a product of imagination and thinking, be it, the idea of a nation state, democracy, economy, financial markets, or a religion for that matter. As these ideas evolve, we then conceive processes and procedures to keep the idea going and growing. But all these ideas that we conceive, do come with

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  • Most of us have been closely watching the world’s reaction to the corona virus pandemic. I must say, there is a lot of learn from the actions, reactions and inactions. For example, I have looked at China’s overall approach to combating SARS-COV-2 for a few months now, and my heart goes out to the families

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  • Since the financial crisis of 07/08, we have heard so much about, how much and how badly, the banks got their business wrong. And to a large extent, that’s true. Over the years, banks have evolved into a very complex structure, mostly for the need to grow their balance sheet and make profit. And some

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  • The financial crisis of 07/08 was made worst because of the extremely high level of household borrowing. And it is safe to conclude that, high level of household debt remains one of the key causes of prolonged recessions and also a slow recovery thereafter.

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  • So what do we know about science, economics and religion ? Well! for starters, science existed since the day Universe came into being, and therefore science has been around long before humans or human civilisation came into existence. Science is as old as the universe itself. There is science on Mars, but no economy. Also

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  • A well thought out financial regulatory framework, economic system, and policy decisions that can stand the test of time needs to be evolutionary, and requires a certain level of debate, discussion of ideas and possibilities. A strategy and approach that has gone through an evolutionary process, and is proactive, tend to have a greater chance

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  • When answering the question, why the quantitative easing (QE) didn’t create an inflationary fire in the developed world as expected by many in the markets, we would probably need to go back to basic. And based on basic economics, we know that the real inflation is driven by an increase in spending from the consumer side. The

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  • Perception is a major factor driving volatility in the market and this is why I am of the firm opinion now that it’s the market psychology and the overall investors sentiment aka the “mood of the markets” that creates and drives the volatility. And when a perception starts getting entrenched then people generally tend to

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  • The markets are once again busy with chatter about Emerging Market ( EM ) and the sound of CHOAS seems to be re-emerging and many in the market are starting to wonder, what’s next ? A number of analysts have gone on record suggesting in their daily market commentary that emerging markets could now be

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