Interim Budget Key For Stock Markets In Near-term: Experts

Finance Minister P Chidambaram will present the interim budget on Monday ahead of the general elections due in the next three months. “The Vote-on-Account will be watched closely. Within that, markets will try to understand the contours of the fiscal deficit. Moreover, any indirect-tax benefit to any sector may have an impact,” said Dipen Shah, head of private client group research at Kotak Securities.

1929 Stock Market Crash

So should you sell everything? Blame Wall Street, Not Hard Working Americans, for the Pension Funds Fiasco William S. Lerach | Posted 05.25.2011 | Politics From Depression to Public Inspiration Robert Kuttner | Posted 05.25.2011 | Politics Read Whole Story DK Matai | Posted 05.25.2011 | Business Read Whole Story DK Matai | Posted 05.25.2011 | Business Echoes of a Distant Crash Robert S. McElvaine | Posted 05.25.2011 | Politics Contingency Plans For Revised Edition of “A Happier History of America” by Rudy Giuliani David Quigg | Posted 05.25.2011 | Comedy “Black Tuesday” and “Happy Days Are Here Again” at 80 Robert S. McElvaine | Posted 05.25.2011 | Business Read More: Income Distribution, Labor Unions, Black Tuesday, Tax Rates, Happy Days Are Here Again, 1929 Stock Market Crash, Socialism, Capitalism, Free-Market Economics, Barack Obama, Recession, Great Depression, Financial Crisis, Wall Street Crisis Mccain, Business News In what must rank as one of the most ironic coincidences in history, “Happy Days Are Here Again” was recorded on the day that was to be called “Black Tuesday” and become synonymous with the with the onset of the Great Depression.

Chicago Fed Sees Risk From High-Speed Trading in Stock Market

Are record profit margins going to stay at or near all time highs? The answer to these questions can be different depending on whom you ask and how you view the market. Investors who subscribe to valuing the market with the CAPE ratio (Cyclically Adjusted Price Earnings Ratio) would tell you the S&P 500 is dangerously overvalued, while someone using P/E ratios, using trailing twelve months or forward earnings, would tell you the market is fairly valued to slightly overpriced. Profit margins tend to be at the mean reverting, but the Fed plans on holding rates low for several more years.

Stock Market Outlook 2014: Is The Rally Over?

Third, there may be limits to arbitraging global mispricing. There is extensive evidence that investors bid up the prices of growth assets, to the point that their long-run return is below the performance of distressed assets (sometimes referred to as value investments). Some observers regard this as mispricing, and contend that it offers opportunities for arbitrageurs. The strategy would be to buy equities in distressed markets and to short-sell securities in fast-growing markets. However, short-selling can be costly and risky, thereby allowing ‘hot’ markets to remain overpriced, and to yield disappointing long-run returns.

Oddly, Stock Market Returns And GDP Per Capita Are Inversely Correlated

In a document posted on the Chicago Fed website, senior policy adviser Carol Clark highlighted five questions for policy makers and regulators to consider, including how to oversee trading thats spread across different asset classes around the world and whether rulemakers have adequate technology and systems in place to oversee markets. The factors that have contributed to the adoption of high-speed trading and affected market structure in recent years include competition, technology and regulation, Clark wrote. The unexpected ways in which these dynamic forces are coming together raise a number of important policy issues. The Fed is the latest voice to join the debate over whether the $22 trillion U.S. equity market is organized appropriately.


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