Two years ago, during a brief window of time in October 2008, there were a few days when the sudden and unexpected explosion of the Sub-Prime Mortgage Crisis was so intense that many leading economists and experts questioned whether the entire modern financial system may collapse. Banks rely on the ability to borrow funds from each other in order to finance day-to-day operations, but after the failure of Lehman Brothers, the interbank credit market froze up.
Banks are not the only business institutions that rely on credit in order to sustain daily cash flow levels, and when the interbank credit market froze in October 2008, businesses around the world nearly failed. In fact, if the credit markets had not loosened a little, chances are strong that, indeed, the entire global financial system would have failed.
Central Banks were fully aware of the lack of liquidity and lending in the interbank market, so it joined forces with the European Central Bank, Bank of England, and other major Central Banks around the world, and they all slashed short-term interest rate targets to all-time historical lows. In fact, the United States interest rate has remained at 0% to 0.25%. This incredibly low yield did not turn-off investors; moreover, capital flows into the U.S. dollar actually occurred at unprecedented rates, and a huge bull market in the U.S. dollar developed during the latter half of 2008 and the first quarter of 2009.
How Long Can Investors Earn No Money?
Due to extremely low interest rates, there is little incentive for an investor to leave funds in the United States right now. Currently, economic conditions in the U.S. have deteriorated materially, and the economic recovery is slightly faltering. Although a double-dip recession is possible in the U.S. and other states, but that is not the most likely scenario. The most likely scenario is that the United States will enter into a multi-year period of very slow economic growth. Deflation will most likely remain a threat.
Therefore, investors have no incentive to hold U.S. dollars. The Federal Reserve has made its dovish stance concerning the U.S. recovery very clear, and accommodative monetary conditions will not be tightened until well into 2011, and there is currently a strong chance that another round of quantitative easing will be introduced in the U.S., which will cause the dollar to fall further and investors to become increasingly hesitant concerning capital flows in the U.S. economy. Thus, if investors cannot earn yield in the U.S., where should they look? One definite answer is India.
Indian growth over the last decade has been exceptional, and it is only expected top continue into the future. Massive advancements in national infrastructure and technology are helping to aid an actual transformation in India. This economic transformation of India has already drawn countless investors in search of strong growth to the table.
Reasons to Invest in India
It is clear that developed nations are heading for a multi-year period of very slow economic growth and currency volatility in the forex market. At the same time, developing nations such as India, China, and Brazil are all moving forward at incredible rates. All three countries are posting GDP figures close to 10%, and most economists believe these high rates of economic growth will continue for years to come. Each year that the developed world struggles while China, India, and Brazil advance is another year that emerging markets such as China, close the gap of economic power.
The Indian stock market reached a 2 ½ year high around 20,000 and second quarter GDP figure came out at 8.8%. This level of growth is not only expected to continue and be sustained, but some economists believe that GDP could actually increase to about 10% by 2013-2015. As India continues to allow deregulation and free market principles to operate, the economy should continue growing. Two companies that should see strong growth over the mid and long-term:
Economic growth in India is here to stay. Incredibly strong infrastructure is combining with domestic demand and strong foreign capital flows to create a healthy state of economic growth that should continue for years to come. A Forex trading demo account can help you learn to how trade the dollar versus the Indian rupee.
Talwalkars IPO Allotment Status and Talwalkars IPO Listing Date are yet to be announced. Since the Talwalkars IPO has been quite heavily oversubscribed, Talwalkars IPO Allotment chances will be pretty low and definitely through lottery. If you have applied through the non institution high networth investors catgeory, your chances of allotment in Talwalkars IPO is almost non existent. However, if you have applied under the retail investor category, the chances of allotment of shares in Talwalkars IPO are much higher. The URL to check the allotment status of Talwalkars IPO will be posted here as soon as it is released. I will also update details on Talwalkars IPO allotment chances, Talwalkars IPO Listing Date, Talwalkars IPO refund details and also Talwalkars IPO grey market premium. So if you have applied in the Talwalkars IPO, keep checking this space often.
Goenka Diamond & Jewels IPO Subscription Details as of today seems pretty encouraging. The institutional bidders category has oversubscribed already. Goenka Diamond & Jewels IPO has seen excellent subscription interest from high net worth individuals and hence the non institutional category in the Goenka Diamond IPO has already oversubscribed by over 7 times. I have a feeling that the Goenka Diamond and Jewels IPO is going to oversubscribe heavily. The retail investors category has not see good subscription interest till now but that is expected since retail investors usually prefer to wait and watch how the IPO performs and only place their bids on the last day of the IPO being open for subscription. Goenka IPO subscription details will be updated here everyday at market close. Goenka Diamond & Jewels IPO allotment status and allocation details will also be updated here as soon as the link to check the allotment status of Goenka IPO is available online.
Shree Ganesh Jewellery House IPO Allotment Status is likely to be released within the next few days. Retail investors are likely to get close to full allotment in the Shree Ganesh Jewellery House IPO. This is because Shree Ganesh Jewellery IPO had only just managed to oversubscribe. Shree Ganesh Jewelery IPO Allotment details will be published here and the link to check the allotment status of Shree Ganesh Jewellery House IPO will be posted here as soon as the same is published by the Link Intime, the registrar of Shree Ganesh IPO. So to check Shree Ganesh IPO Allotment details and allocation basis, do visit this page again in a few days time. I will also update Shree Ganesh Jewellery House IPO Listing date, and grey market premium that Shree Ganesh Jewellery House Limited is commanding before the listing date of the IPO. Listing gains will be moderate since Shree Ganesh Jewellery House IPO did not see huge oversubscription.
Persistent Systems IPO Allotment Status has not yet been released but one look at the Persistent Systems IPO Subscription details will tell you that the allotment of Persistent Systems IPO will be through lottery. This is because the Persistent Systems IPO has oversubscribed heavily. Retail category in the Persistent IPO has oversubscribed by about 22 times and hence the chances of allotment look very bleak. If you have applied in the Persistent Systems IPO and are waiting for the Persistent Systems IPO Allocation details to be released, please bookmark this page and visit often. The link to check Persistent Systems IPO Allotment Status online will be posted here as soon as it is available. Also you can check this page to find out the Persistent Systems IPO Listing Date, Persistent Systems IPO grey market premium, listing gains that Persistent Systems Limited is likely to provide on the listing date and other related information with regards to the Persistent Systems IPO.
Intrasoft Technologies IPO Subscription Details as of March 24 looks good. The Intrasoft Tech IPO has generated fairly good subscription interest from all classes of investors. However, it’s still early days and the IPO as yet has not oversubscribed. But looking at the subscription details of Intrasoft IPO, I’m quite sure the IPO will see a good amount of oversubscription. Hence it would be a good idea to go ahead and apply in the Intrasoft Technologies IPO. The listing gains on selling the alloted shares of Intrasoft Technologies Limited on the IPO listing date, is likely to be pretty good. So do not miss out on the Intrasoft Technologies IPO. For more updates on the Intrasoft Technologies IPO subscription details, Intrasoft Technologies IPO Listing date and Intrasoft Technologies IPO Allotment status and allocation details, do keep checking this space often
IL&FS Transportation Networks IPO Subscription Details presents an encouraging picture. Looks like investors are lapping up IPO issues nowadays. This is a good news since after the Reliance Power IPO, a lot of investors lost faith in applying in IPO’s for listing gains. But looking at the subscription details of IL&FS Transportation Networks IPO and other IPO’s which have closed in the recent past, it appears that the investors confidence in IPO’s has been restored. Almost all the IPO’s are getting heavily oversubscribed these days and the case of IL&FS Transportation Networks IPO is no different. If you are looking for listing gains, you should apply in the IL&FS Transportation IPO. More detail about the IL&FS IPO including the listing date, allotment status of IL&FS Transportation Networks IPO and subscription details will be updated here on a regular basis. So do check back here often to know up to date details regarding the IL&FS Transportation Networks IPO.
NMDC IPO Subscription Details as of today look pretty good. The NMDC IPO has almost fully subscribed with still one day remaining before the IPO closes for public subscription. NMDC IPO Allotment appears to be pretty decent as of now considering the fact that the retail investors category of NMDC IPO has not yet been fully subscribed. NMDC IPO Allotment Status will be available in a few days time. The link to check the NMDC IPO Allocation details and allotment status will be posted here as soon as it has been released by the registrar managing the NMDC IPO.
DQ Entertainment IPO Allotment Status will be known in a few days. If you applied in the DQ Entertainment IPO, please be advised that the allotment is quite tough to obtain. The allotment will be made on lottery basis and the allotment chances will depend on the number of shares you have applied for. DQ IPO allotment status will be available online in a few days time and the link for checking the DQ Entertainment IPO allocation online will be posted here. So to check the DQ Entertainment IPO allocation basis, check this space again after a few days. DQ Entertainment IPO Listing Date will also be updated here as soon as the listing date details are announced by the company. Since the DQ IPO has heavily oversubscribed the IPO listing gains for those looking to sell on the listing date would be very high.
Even though the real estate sector is performing horribly both domestically as well as at a global level, the DB Realty IPO seems to have gone well with investors; at least that is what a look at the current DB Realty IPO Subscription Details suggests. DB Realty IPO Subscription figures show a healthy demand for the shares of D B Realty limited from Qualified Institutional Buyers especially from FIIs. The retail investor response has so far been very poor but it is likely that retail investors will take a cue from the FIIs and submit their bids for the DB Realty IPO either on Monday or Tuesday. If you are still undecided on whether to apply for the DB Realty IPO or not, I suggest you wait till Tuesday afternoon before making your decision. If the IPO oversubscribes by more than 3 times by them, one can apply in the DB Realty IPO confidently. For updates on the DB Realty IPO Subscription Details, DB Realty IPO Allotment status and DB Realty IPO Listing date do watch this space in the near future.
Syncom Healthcare IPO has been one of the better performing IPO’s when compared to the other IPO’s that opened for subscription in the last week of January. Syncom Healthcare IPO Allotment Details as well as IPO allocation basis have not yet been released but it appears that allotment will be tight especially for investors who have applied only for a few shares. As soon as the Syncom Healthcare IPO allocation details are out, I will update that in this space. So keep checking this space for updates on Syncom Healthcare IPO Listing date and Syncom Healthcare IPO Allotment Details.
Thangamayil Jewellery IPO Allotment Status is not yet available. Thangamayil Jewellery IPO closed yesterday barely managing to fully subscribe. The oversubscription was marginal and hence even though the Thangamayil Jewellery IPO Allotment Status is not yet been released, retail investors can assume close to full allotment when you consider bounced cheques and invalid bids. More details on the Thangamayil Jewellery IPO Allocation basis will be known in the next couple of week. I will update the allocation details of Thangamayil Jewellery IPO as soon as this information is made available to the public by the registrar managing the IPO. Thangamayil Jewellery IPO listing date is also yet to be announced and will be updated here as soon as an announcement has been made in this regard.
While checking the Aqua Logistics IPO Subscription Details, one thing stands out clearly – the lack of interest from Qualified Institutional Buyers. There has not been a single bid made from Domestic Financial Institutions and mutual funds while the FII interest in the IPO seems pathetic as well. The Aqua Logistics IPO is scheduled to close on Tuesday Feb 02, 2010. So the Aqua Logistics IPO will be open for 2 more trading sessions and the subscription details at the end of Tuesday might look much better. But it is advisable to exercise caution and avoid this IPO, given the uncertainty over the local as well as global market conditions at the moment. Aqua Logistics IPO has received fairly good Subscription interest from retail investors but without institutional investor interest in the IPO, the listing gains might not be good enough to justify taking the risk of investing in this IPO. If you would like updates on Aqua Logistics IPO Subscription Details, Aqua Logistics IPO allotment status and Aqua Logistics IPO listing date, do keep checking this space.
Vascon Engineers IPO Subscription Details suggest that there is decent demand for this IPO from various classes of investors, especially from the Institutional Investors category and the corporate investors category. Vascon Engineers IPO had opened for subscription on the 27th of January 2010 and closed for subscription yesterday. Overall the IPO had oversubscribed by 0.22 times. Since most of the bids for the IPO have been received at Rs. 165, the Vascon Engineers IPO price is likely to be fixed at Rs. 165 which is the lower end of the IPO price band which was fixed between Rs. 165 and Rs. 185. Since the IPO oversubscription amount is not huge, do not expect Vascon Engineers Limited to list at a significant premium to its issue price. However, if the market conditions on the Vascon Engineers IPO listing date are favorable, then investors who invested in this IPO might see decent returns. Vascon Engineers IPO allotment for retail investors will be 100%. For more details on the Vascon Engineers IPO allocation details, Vascon Engineers IPO listing date and Vascon Engineers IPO allotment date do keep checking this space.
Michael Mesa Miami is a Miami based Research Analyst and a good friend of mine. I met Michael at one of the online forums I frequent. Though both Michael Mesa Miami and I have been active participants in a couple of research related forums for quite some time, I got to know Michael Mesa Miami closely only over the past couple of years.
Only after talking to him over the phone did I realize the achievements that this person has made in various fields. Later I found out that Michael Mesa Miami was a very devoted person and often donates a lot of money to various charities across the globe. Michael Mesa Miami has donated a lot of money to charities like American Red Cross and AIDS Research Alliance. Not everyday do I get to meet a person like Michael Mesa Miami.