panch-tattva talk…entire world on fire

Friends,

Today Nifty closed up at 4958 for and this happens to be highest point since 8th May 2008.

The Gold prices are at over $1017/oz.

Silver rules at over Rs 26500/kg in India (up by over 10pc in a month).

Crude at $71/bbl is also in high rate zone compared to what it was a few months back.

The European markets have closed up by a good margin.

Nasdaq is past 2100 and DOW is past 9750 at this very hour (both more than 1pc percent up since yesterday).

Asian cues also have been generally up.

The metal prices are also up to some extent.

I am again at the cross roads and have a feeling if it is only the money supply responcible for it. There is not much to worry about but surely the world’s central banks would be up in arms to combat the situation which may be called building up of asset bubble. You may recall that I had expressed some dismay when a similar phenomenon was noticeable in the year 2007 which later on proved to be germinator of an unpredented financial crisis. Also, the asset prices are up while the interest rates are not on the way down. This is also a mismatch.

This is enough to make us sit up and take notice of the further developments without losing the opportunity to grow our money but being equally cautious about not being cought on the wrong foot. You should be careful about buying suitable puts of Oct series in respect of all big holdings in your portfolio particularly if the same have had a good run up in past fortnight and make hay with comfort while sun shines.

HariOm,
krsnaKhandelwal

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