Sunday, June 24, 2012

Financial Astrology II

Jupiter in Taurus is favourable for precious metals - gold, silver, palladium and platinum. We have been advocating buying gold, when it was at 700 USD per ounce. Now it is at 1625 USD. I have been buying gold when the price was 1200 per gm and now it is 2775 per gm.
There is a support level at 2500, but Gold is so bullish that it may not touch that support level. When it goes down, it is only a secondary reaction in a bull phase. Gold will continue to be bullish, as long as the dollar and the rupee remain bearish ! Silver, Palladium, platinum etc are also good investments.
Regarding the stock market, both bullish and bearish factors are powerful. 2012 and 13 are said to be years of Great Depression and this is a big bearish factor. But India and China are insulated economies and are the only economies which are growing. The Eurozone is gone. So is the US ! By 2020, Indian GDP will quadruple and Sensex will be 50 K. But the Global Recession  is affecting India and China and we should be geared for slower growth ! So the Sensex will fluctuate as usual and if you have a long term perspective, you can invest in blue chips and wait for the market to go up !
Saturn in the 3rd is OK but after six months, he will be in India's 4th. This is Angular Saturn and there will be political chaos. People are discontented by the rule of complacent and corrupt politicians. Even after India's downgrade, the politicians are saying that the downgrade is manipulated ! That Fitch's downgrading is all nonsense. It is not patriotism which is behind this. Just to show that their governance is OK !
Angular Saturn creates other problems as well. Increased consumption of oil and can mean only increase imports. India's import bill has gone up to 488 billion. We have 303 b exports and that leaves us with a deficit of 185 billion. We are already burdened by a 319 billion debt ! Where are we headed ? Quo Vadis, India ?  India, despite the talk of being the third largest economy of 4.45 tr USD GDP PPP, is a minus nation !

Tuesday, June 19, 2012

India downgraded to BBB !

Adverse Saturn strikes, as Jupiter tries to redeem India ! 

Fitch has downgraded India to BBB, the lowest investment grade. From Stable
to Negative.

The Rating Agency siad the outlook reflected heightened risks that the
growth potential of India will deteriorate if reforms were not accelerated. Governance should be
improved. A more postive investment atmosphere should be built.

"India faces an awkward combination of slowing growth and still-elevated
inflation. India also faces structural challenges surrounding its investment
climate in the form of corruption and inadequate economic reforms," Fitch
said in a statement.

The negative outlook reflected India's limited progress in fiscal
consolidation and in reducing the deficit ( which stood at 185 billion, the highest in
recent years ).

Some positive factors

      The market will fluctuate as usual and it is now steady at 16 K. But
Jove in the 11th favours the enterprising. India and China are the two
economies growing. India has already become the third largest economy by GDP
PPP, estimated at 4.45 trillion USD. In real GDP terms, however, she is
11th. Her tourist receipts are more than 200 billion and will reach 375
billion in a couple of years. Her IT exports were 79 billion last year. So
India has great potential, along with China, who is growing at a faster

      In this context, the Indian stock market offers great opportunities
for the investor and this is implied by Jovian 11th Transit. Adverse factors
are represented by Saturn and high inflation and value erosion of rupee. So
be wise while investing. In the long term you will succeed but you will have
to wait and wait, as Saturn is adverse.

    S & P had warned India that India will lose her investment grade, if she
does not put pedal on reforms. These are the adverse Saturnine factors and
industrial development is the bullish Jovian factor !

      So we advise investors to enter at lower levels. Watch the market and
buy at declines. Buy only blue chips !

Gold Astrology

On the other gold is up at $ 1628 per ounce and INR 91258 ! We have been
advocating buying gold and other precious metals - silver, palladium and platinum.