1.Central Banks are buying Gold,as the USA resorts to Sanctions,other countries are shunning the US Dollar,Liquidity Crunch in the US Dollar due to tapering by the US Federal Reserve,etc.The US Federal reserve may raise rates.
THE REASON FOR THE RATE HIKES :-
1. OVERVALUATION OF COLLATERAL DUE TO ASSET BUBBLE,AS LIQUIDITY IS MORE AND CASH IS CHEAP.
2.To save the Pension System.The decade long ZIRP,is reported to have destroyed the US Pension System.
3.To deleverage the Huge Corporate Debt.
Besides the Gold\Silver ratio is above 84.Silver looks good.
2.In the BSE\NSE, NHPC looks good,as the GOI has brought out a Policy favouring Public Sector Power Cos.NTPC may buy some stressed Power Cos and has taken a Loan of about US Dollars 150 Million for raising production.
3.ONGC,Oil India and IOC may buyback shares.
THE REASON FOR THE RATE HIKES :-
1. OVERVALUATION OF COLLATERAL DUE TO ASSET BUBBLE,AS LIQUIDITY IS MORE AND CASH IS CHEAP.
2.To save the Pension System.The decade long ZIRP,is reported to have destroyed the US Pension System.
3.To deleverage the Huge Corporate Debt.
Besides the Gold\Silver ratio is above 84.Silver looks good.
2.In the BSE\NSE, NHPC looks good,as the GOI has brought out a Policy favouring Public Sector Power Cos.NTPC may buy some stressed Power Cos and has taken a Loan of about US Dollars 150 Million for raising production.
3.ONGC,Oil India and IOC may buyback shares.
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