A scary graph. Basically, as per a proprietary JP Morgan indicator, markets are high up in speculative territory. How high? A level last seen around end of 2007. Hedge funds had started showing trouble in the US since mid 2007. Our own markets had the crash after the Reliance Power IPO in January 2008.
Investors in the US are shunning mutual funds which have relatively higher expense ratios. I expect that with inception of direct plans in mutual funds in India we should see investors moving towards direct plans as compared to regular plans. In comparison, I do not see people rushing to exchange traded funds (ETF) yet.
Interesting news to keep in mind if you study and invest in auto stocks. The UV tidbit should affect Mahindra & Mahindra which is the dominant player in India today.
An increasingly desperate government looks to increase revenues.
HSBC Purchasing Manager Index (PMI) figures suggest strength in the economy.
A reminder of all that is not right in the US financial system. Politicians and the banker class are the same the world over. The ever vitriolic Matt Tabibi reports.