Wednesday, December 19, 2012

Fiscal Cliffs and White Christmas...

Its being quoted by analysts on the idiot box as one of THE events of the year.The tax cuts approved by president Clinton will get taken out to impact the middle class taxpaper.

The Obama administration's plan to increase taxes for thos earning above $2,50,000 has drawn fire from the Republicans.Here you have people like Buffett and some CEOs of fortune 500 companies screaming that they be taxed more yet the senate cannot decide.

The trillions of $ of deficit may not be halved if the rich are taxed,but it will have some impact unlike the Republicans argument.Strangely they agree that if the tax cuts lapse then any increase in tax for the middle class as well as on investments will have a negative affect on investments and growth.

Whatever may be the case,Indian equities have given a 30% return,not bad for a year in which most analysts asked investors to stay away from-India,equities...in that order.
Suddenly the Yuletide spirit has swamped Indian markets from increased FDI inflows to the positive move in metal counters over the last week.
Even the world seems to be a more joyous place notwithstanding the internecine battle in Syria,political unrest in Egypt,nucluer missile tests by North Korea etc
The hard landing envisioned for China has not happened and commodity demand should pick up.Asian Regional index fell fom a 16 month high on Fiscal cliff and a stronger Yen but we certainly seem to have a brighter dawn ahead in 2013.
Short term support for Nifty is at 5850 and stcoks to watch - Tata Global(read my earlier post),Hitachi Home,LIC Housing Fin,Sterlite for 20% gain in 6 months.Merry Christmas and a very happy,profitable New Year!!