Quote:
Originally Posted by Economist
The global recession has bottomed,Most developed nations are now out of the woods.The recovery mode has began.
This Global Financial crisis,(GFC) has turned out to be not as bad as predicted earlier. Fortunately some developed nations did not even have negative growth. Mostly Europe and N.America was affected.
The interesting out come I have seen is:
- Emerging economies like China,India & Brazil has come out fine in the GFC.
- China (with resilient growth and commodities purchase)was the trigger that had ended the GFC.
- The wester countries are surprised (by the resilience of China & India) and now reaffirmed that future growth is in China & India.
- I am seeing renewed optimism and bullish behavior on investor sentiment towards China and India.
- In Nov 2008 no western investor wold have dreamed of investing in Indian money market or short term debt market ( The wheel that moves property market in India)
- Now there is renewed interest in the west to invest in Indian credit market due to stable INR and Interest rate arbitrage (ROI 2% US and 3.5% Australia against 7% India)
The Indian credit wheel that runs runs the growth of India is now moving again,The wheel is slowly being oiled by foreign investments again and the the wheel will picking up speed.
Equity market is seeing foreign investor returning to ride the upside.
M&A acitivities are picking up,IPO's are on the cards again.
NOW IS THE TIME TO BUY PROPERTY AT THE LOWER PRICE AND WATCH IT GROW OVER THE NEXT FIVE YEARS.
The return will not be astronomical as it was in 2005 to 08,however the forecast is healthy double digit growth for the next few years. |
- Emerging economies like China,India & Brazil has come out fine in the GFC.
>Have you seen latest Russian GDP growth.It shrank 10.9%
last quarter
- China (with resilient growth and commodities purchase)was the trigger that had ended the GFC.
>China's purchase of commodities is slowing down.Proof is baltic index has moved in negative for the last 9 weeks.China is growing because of huge stimulus from government.Once the stimulus fades lets see how much it grows.Anyway stock market is falling in China anticipating this.Finance offical from China himself had agreed that GDP numbers may not be entirely correct and China does lot of data massaging.
- In Nov 2008 no western investor wold have dreamed of investing in Indian money market or short term debt market ( The wheel that moves property market in India)
>Can you elaborate how short term debt market moves property market.Are you talking about real estate companies?
I was thinking that short term debt is never invested in property.Can you give some proof for this.
- Now there is renewed interest in the west to invest in Indian credit market due to stable INR and Interest rate arbitrage (ROI 2% US and 3.5% Australia against 7% India)
>Interest arbitage is there for long and not now only western world has found it out.Remember INR fell from 35 to 50 and now moved around 47.Is this stability.
The Indian credit wheel that runs runs the growth of India is now moving again.
>Have you seen the latest credit figures from RBI.It is saying the opposite.
NOW IS THE TIME TO BUY PROPERTY AT THE LOWER PRICE
>Is the price low now?