Is the fall in gold and rise in stocks interlinked?
In May, Sensex was at 12,600, gold was at $720 an ounce and crude oil was well over $70 a barrel. We said oil prices will fall, gold is not worth buying as an investment (except in those rare periods when inflation is higher than interest rates) the best bet ought to be on the enterprise economy that is exceptionally strong. Our belief is...
The pluralism of experience that… financiers bring to bear in their decisions gives a wide range of entrepreneurial ideas a chance of insightful evaluation,” says Edmund S. Phelps, winner of the 2006 Nobel Prize in economics. In an article published the day after the Nobel award was announced, Phelps observes, “Instituting a high level of dynamism, so that the economy is fired by the new ideas...
Debashis Basu points out the lessons for a trader in Amaranth’s $6 billion blow up
In late September and early October, Amaranth Advisors, a US-based hedge fund went under. It had a large exposure in the natural gas futures market and was wrong-footed when gas prices tumbled. The total loss? A humungous $6 billion. The hedge fund lost that money in just one week. The trader who took the firm...
