Good investing reading – 8 January 2013

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.

Speculators Rush Into Risk By Most Since 2007 – Zerohedge

 

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.

Investors Sour on Pro Stock Pickers – Wall Street Journal

 

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.

China Auto Makers Foton, Great Wall to Enter India – Wall Street Journal

 

An increasingly desperate government looks to increase revenues.

Tax the rich: Is govt looking at a new 40% tax bracket? – Firstpost

 

HSBC Purchasing Manager Index (PMI) figures suggest strength in the economy.

The economy is bottoming out – Live Mint

 

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.

Secret and Lies of the Bailout – Rolling Stone

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