Consequences of un uniform growth

Latest survey of a leading research institution published an article mentioning that Mumbai GDP will over take Thailand and Hong Kong by the   the year 2030. Really it is very good to hear that one metropolitan city’s GDP is  greater than a country( though the Countries are small).  but is worth to watch the negative side of the growth.
Now a days the most of the developments are focused in and around the cities only which reflects that all developments and infra structure planned for the cities only, Hence the population growth of Mumbai will raise about 74% because of the increase in labour opportunities. Because of the population explosion in the cities the government has to  spent more for the infra structure and the basic amenities for the people. Comparing with China  we are spending very less  for the infra structure.

For this only the government has to spend at least  112 Lakhs  Crores of rupees. If the Government is more focused about the metropolitan cities then the villages and the towns will be completely in the neglected state. Which will give a negative impact of our economy.

Hence    the growth of the country  will be sustain and lead in a positive trend if and only if the growth is in all aspects, irrespective of villages and cities. There should not be a discrimination  between the cities and the villages. The Government has to plan and focus more for the development of villages which will  result in the uniform growth of the country.In other words un uniform growth will only lead to the negative impact only.

What is future of Airline Industry?

The Airline Industry languished in 2008-2009 period because of economic downtrend in Countries all over the world. After June 2009, the Industry picked up because air travel across the world picked up and also by air cargo transport. The last two quarters, Airline companies saw some revival in their earnings. And every one thought the worst is over for the Airline Industry.

But Suddenly, the ashes from the volcanoes of Iceland brought the movement of Airlines to standstill in Europe. The flights passing through Europe from other Continents were also affected due to this. This has come as rubbing salt in the wounds for airline industry. Almost all the flights were cancelled in Europe which is the center point of Air traffic in the world.

With the Economic conditions are not improving and it is standstill in many countries, the revival of Airline industry is looking bleak in the near futures. Investors can avoid making investments in Airline stocks are the current level.

How good is Autamated trading system in Trading the Markets?

Automated trading system is a method that generates buy and sell signals based on mathematical calculation to trade the markets without any manual interpretation. The Mathematical calculation could be any formulae like RSI, ROC, Stochastic and etc.
Based on any single indicator or multiple indicators, the system generates buy and sell signals in Intraday, Short term and Long term. A trader by himself, without studying the technicals of the stock, can do buy and sell based on these signals. A manual study of these technicals is a cumbersome process. A trader no needs to experience this hardship to trade in the markets when he uses this Automated trading system.
Will this automated trading system really help a trader in buying and selling in the Markets? The Answer is simply no. Because, the first thing is, the market movements cannot be gauged in mathematical formulas. The market movements are random and it cannot come into the gambit of formulas.
Even if there is one, the discovery of that formula would have been already discounted by the Market. Unless you study the markets manually and understand the nuances by yourself, no one can make profit out of the markets.

Will The Bull Run Continue in Dow Jones?

The US Stock Index Dow Jones made an all time high of 14,279 on October 2007 and it was followed by a crash towards 6440 in march 2009. The crash to that level was followed by a rally towards 11000. Today it has made a high of 11038. Now the Million Dollar question is, will Dow move past 14000 in the near term.

Fundamentally speaking, though the financial situation is under control, it has not fully recovered from the recession. Though some indicators are improving, it really doesn’t reflect the growth we have seen 3 years back. The fundamentals have not improved as the stock prices. When everybody is bullish on Markets and Economy, a major top is likely to form. The same situation is prevailing now also. Every where we can see optimism. Nobody is talking of badtimes which has happened only one year back.

Technically speaking, the crash in 2008 is followed by rally in 2009 which is very quick when compared to the previous rallies. It means it is V shaped recovery. These type of vast price movements are always seen in Market bottoms and Market Tops. Since the present volatility is taking place in a Top area, the present technical situation is better construed as a top which indicates, the present rally is likely to lose steam in coming weeks. Going by the technicals, it indicates Dow is unlikely to cross 14000 for another 3 to 5 years.

Retail Investors should be carful at this time. They should stick to the law, ‘Buy low and Sell high’. Right now the we have to sell high. The impending top is around the corner. Be prepared for the event. Don’t get buoyed by the Euphoria in the Markets.

Terrorism and development

If you look at the countries which are affected by terrorism, it is evident that those countries are not developed yet. Terrorism is caused by religious belief and social disparity. In developed countries, we rarely see terrorism except because of religion.

In Europe, Spain and England are affected by religious terrorism. But none of the European Countries is affected by terrorism that is borne out of social disparity. This is because, the development in these Countries are homogenous and their society is not separated by casted and creed.

It is not the case in India, Pakistan, Sri Lanka, Nepal or Afghanistan. The society in these countries are divided by caste, creed and religion. That is why we see Maoist struggle in India and Nepal and bomb blasts in Afghanistan, Pakistan and Sri Lanka. The main problem in these countries is the social disparity the communities. It is wide open in these countries.

That is why the internal clashes are happening frequently in these countries. If the disparity between the communities in this countries are reduced then automatically the social unrest would come to lower level. Instead of decimating the terrorist, if the Governments in these Countries decimate the social disparity, the menace of Terrorism would be rooted out completely. But no Government seems to move in this direction.