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Wednesday, October 13, 2010

Hot Streak...

The equity markets are on  roll and every punter in every shop is making some money.The madness is still not contagious and hence allows me to a little fearful(even though i am not paid to be so!).

A repeat of 2004 Homeland Investment Act 2004 in the US,when tax rates were temporarily reduced from 35% to 5.25% would lead to a trillions of $ of unrepatriated profits back to the US.Asset prices there are already at record lows and so far no cherry picking has been visible.

Imagine the gush of money that could vamosh from all the emerging markets and quickly and where would it leave all those investors who are rushing to catch the gravy train?India is lucky to have a huge consumption driven economy and the billion strong population would be a handy fallback.

What guts me is the as yet small number of startups and the lack of entrepreneurial streak in my fellow Indians,the bureacrasy,the redtape all the old misnomers still await the unwary.Before I started this blog I had taken a bet with a treasury head of a Bank I shall not name that the Rupee wouldn't fall below 50 versus $ and we turned the corner from 49.30 when Europe threatened a collapse.I  still remain a Rupee Bull!