Dear Mr. Haresh,

We absolutely enjoy reading your articles. Majority of the group members
feel the same. Please keep contributing.

Regards

On Tue, Apr 7, 2009 at 12:26 PM, Haresh Soneji <[email protected]>wrote:

> if the group really thinks so, i will unsubscribe immediately.
> HS
>
> On Tue, Apr 7, 2009 at 8:47 AM, rahul frm pune 
> <[email protected]>wrote:
>
>>   Dear Mr Cut & Paste,
>>
>> Why you harrasing readers by your nonsense mails?
>>
>> please contribute something worthwhile and dont attack with lot of junk
>> articles
>>
>> thanks
>>
>> Rahul
>>
>> --- On *Sat, 4/4/09, Haresh Soneji <[email protected]>* wrote:
>>
>>
>> From: Haresh Soneji <[email protected]>
>> Subject: {GS} CNBC TV18 Column -- Market-o-logy -- Playing With The
>> Consumer
>> To:
>> Date: Saturday, 4 April, 2009, 12:58 AM
>>
>>
>> http://www.moneycontrol.com/india/news/cnbc-tv18-analyst-markets/playing-with-the-consumer/391847
>> Column: Market-O-Logy
>>
>> Playing With The Consumer
>>
>>  "Many people want the government to protect the consumer. A much more
>> urgent problem is to protect the consumer from the government."
>> - Milton Friedman
>>
>> *By Haresh Soneji, CNBC-TV18*
>>
>>
>>
>> The Indian consumer has spoken, once again. She/he lacks confidence. But,
>> nobody seems to be listening. The equity market seems to be giving thumbs up
>> to global developments, India Inc. seems to have increased output
>> anticipating a revival in demand and the government is busy with its own
>> political agenda. The result is simple – no one is listening to the Indian
>> consumer. What does the consumer have to say? Nothing great actually. The
>> March survey reveals a strong undercurrent of fear in the minds of the
>> Indian consumer. Weakening optimism about economic and personal finance
>> conditions and deepening pessimism about employment conditions seem to be
>> the key reasons for the massive decline in sentiments. This is reflected
>> from the CNBC TV18 Boston Analytics Consumer Confidence Index for March,
>> which fell another 5.6% over Feb. At 73.5 levels, it’s the lowest number
>> since the index was constituted in Jan ’08. But, who cares?
>>
>>
>>
>> This monthly index is the world’s largest consumer confidence index based
>> on nearly 10,000 face-to-face interviews from respondents across 15 cities.
>> Across the world, consumer confidence is a lead indicator on economic
>> conditions. It should be true for India too. In India, the consumer is
>> worried about the employment conditions and job security. Confidence levels
>> on employment conditions dipped 10% month-on-month, while job security
>> confidence in March dropped 16% odd over Feb. So, if the consumer is not
>> sure about his future income, She/he would rather save than spend. It’s
>> simple. Isn’t it? Yet, no one seems to be listening.
>>
>>
>>
>> India Inc. is focused on increasing supply rather than keeping a tab on
>> demand. This is evident with the rise in manufacturing days and also the
>> output. Business confidence survey conducted by National Council of Applied
>> Economic Research (NCAER) is on its way up, in contrast with consumer
>> confidence. A sharp contradiction here means that if the consumer is not
>> buying, inventories may pile up again. And India Inc. is aware of the
>> consumer trend. At a private equity event in Goa during the weekend, Roopa
>> Purushothaman, MD, Future Capital Research said, “Consumer confidence is
>> down and could be affected by any fresh news on unemployment and deflation.”
>> This is in line with the results of CNBC TV18 Boston Analytics Consumer
>> Confidence Index.
>>
>>
>>
>> Having said that, the consumer spending confidence component in the CNBC
>> TV18 Boston Analytics Consumer Confidence Index rose 10% in March as
>> compared to Feb. But, that doesn’t read much. The only way to read the
>> positive number in the consumer spending confidence is a decline in
>> pessimism levels and not a trend reversal. This could be attributed to the
>> government efforts to prop up demand. Also, the positive sentiment is
>> largely evident in Tier III towns and continues to remain negative in metros
>> and most Tier I cities. Titan’s MD Bhaskar Bhatt confirmed this on CNBC
>> TV18. He said, “The Top 8 cities underperformed rest of India. There is a
>> general reluctance to spend on discretionary items.”
>>
>>
>>
>> So the big question is when India Inc. is aware of likely consumer
>> decision, why is it building up manufacturing? India Inc. appears to be
>> skeptical yet optimistic. Roopa explained to the audience that the Jan-Mar
>> quarter saw sequential growth reviving. But unless, year on year growth
>> stabilizes, the extent of outright declines could be over. This could be
>> seen stabilizing towards the beginning of the third quarter.
>>
>>
>>
>> This skeptical confidence from India Inc. seems to be another source of
>> fuel to the ongoing equity rally. The successful G20 summit is the other
>> reason. Before the G20 meet, legendary investor George Soros wrote that the
>> world may fall into depression, if the G20 summit failed. The G20 submit
>> last week pledged another $1.1tn to save the world from the financial mess.
>> Both, capital availability and cross border trade are now eased to help the
>> consumer spend.
>>
>>
>>
>> Bulls around the globe are shouting at the top of their voice – the worst
>> is over. This is the beginning of the new rally. But, that may just be an
>> illusion. The current rally in the markets – commodity and equity – is all
>> but reflation trade. And traders betting on the world reviving soon due to
>> the stimulus spending by governments could fall flat on their feet and lose
>> a lot of money.
>>
>>
>>
>> The measures taken at ‘saving the world G20 summit’ will definitely be
>> inflationary without actually solving the crises. That could be the root
>> cause of another crises. Timothy Geithner’s plan is flawed and is another
>> financial bubble say veteran experts and economists. We are living in
>> uncertain times. Is the world saved from The Great Depression 2? Only time
>> will tell.
>>
>>
>>
>> But the wise still are uncertain. At the CNBC TV18 CFO awards a few weeks
>> back V Balakrishnan, CFO, Infosys revealed a gem when he said, “People says
>> Cash is King. I would say Cash is God.” If you have cash you are God and for
>> God’s sake, save your cash and invest wisely.
>>
>>
>>
>> When I messaged Ramesh Damani last week asking him about the ongoing rally
>> he replied, “Bear market rallies are like thundering herds of elephants.
>> They will trample anyone in its way and so, is this rally – strong,
>> powerful, and global. The good news is that it still has legs and may
>> surprise on the upside.”
>>
>>
>>
>> I rest my case.
>>
>>
>>
>> *Disclosure:* The author is not permitted to trade and/or invest into the
>> equity market directly or indirectly, apart from investing (long only) in
>> mutual fund products. His equity exposure is only to the extent of ESOPs
>> granted by the employer.
>>
>>
>>
>> --
>> Best Regards,
>> Haresh Soneji
>>
>> +++++++++++++++++++++
>> END PIECE - CRY PLEDGE
>> "Before anything else, I'm an Indian. And so is this little child. The
>> rights I enjoy as a citizen of this free country are hers too. She has a
>> right to be free. She has a right to be happy. But I'm going to fight for
>> her because she has the right to be a child. I'm going to fight for her
>> every single day, every single moment. With my skills. With my resources.
>> With my heart. I'm going to fight for her because I can. And she can't."
>> +++++++++++++++++++++
>>
>> ------------------------------
>> Unlimited freedom, unlimited storage. Get it now Haresh Soneji
>>
>> +++++++++++++++++++++
>> END PIECE - CRY PLEDGE
>> "Before anything else, I'm an Indian. And so is this little child. The
>> rights I enjoy as a citizen of this free country are hers too. She has a
>> right to be free. She has a right to be happy. But I'm going to fight for
>> her because she has the right to be a child. I'm going to fight for her
>> every single day, every single moment. With my skills. With my resources.
>> With my heart. I'm going to fight for her because I can. And she can't."
>> +++++++++++++++++++++
>>
>>
>> >>
>> <http://in.rd.yahoo.com/tagline_mail_2/*http://help.yahoo.com/l/in/yahoo/mail/yahoomail/tools/tools-08.html/>
>
>


-- 
Salman Khan

Blog: salmanspeaks.co.nr
Phone +919350159178

--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups 
""GLOBAL SPECULATORS"" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to 
[email protected]
For more options, visit this group at 
http://groups.google.com/group/globalspeculators?hl=en
-~----------~----~----~----~------~----~------~--~---

Reply via email to