World Economic Forum in Davos warns of ‘Priced to perfection’ – the death trap for bonds and stocks lead by Mergers and Acquisition
Special Correspondent
Jan. 25, 2007

World Economic Forum in Davos warns of ‘Priced to perfection’ for stocks and bonds. In the history of the world many times assets were priced for perfection. All the time economies headed for deep depression. The complacency is significant and comes mainly from the Mergers and Acquisition markets.

The net effect of this can be a collapse in corporate bonds and stock market worldwide. It happened in America in 1929 and in Japan in eighties. The Japanese market is still struggling 60% below the highs made in mid-eighties.

According to experts in Davos, the stocks, bonds and real estate will experience s slow and steady decline for the next sixty years. The emerging economies like China and India will collapse first like American markets in 1929 and then rise sharply over the next sixty years.

World Economic Forum in Davos warns of ‘Priced to perfection’ – the death trap for bonds and stocks lead by Mergers and Acquisition
Special Correspondent
The net effect of this can be a collapse in corporate bonds and stock market worldwide. It happened in America in 1929 and in Japan in eighties. The Japanese market is still struggling 60% below the highs made in mid-eighties.
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30-share index, Sensex spurted to close with a gain of 69.22 points at 14,110.46
Media Release
The benchmark Sensex ended higher by over 69 points on the Bombay Stock Exchange today on revival of buying by funds in index-heavy stocks led by bank and cement segments.
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Oil and gold in cyclical bull move within a secular bear market that started nine months back
Special Correspondent
Oil and gold are both rallying as we mentioned in India Daily few months back. Oil can retest 57058 area. Gold can retest 660 area. Dollar is consolidating and can fasll anywhere between 83 and 84 and then get ready for the next blast off.
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First tax hike for the upper income people - Bush is proposing a sweeping change in taxes for health-care insurance – effect on gold, stocks and bond
Peter Oberois
But over a longer period of time is good for stocks if health care costs and quality of service can be controlled. Bond market will rally as it controls stealth inflation. It will be obviously bearish for gold and bullish for dollar.
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Richmond Fed. Manufacturing index will jump nicely from –6.0 to +3.0 – bullish for dollar, bearish for bonds and gold
Special Correspondent
The manufacturing is stabilizing and moving higher. Richmond Fed. Manufacturing index will jump nicely from –6.0 to +3.0. It will be real bullish for dollar and bearish for bonds and gold markets.
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Housing and manufacturing will continue to give encouraging signals this week but quantitative and analytic models send warning signals
Special Correspondent
While the data will show apparent soft landing of the economy, the quantitative and analytic models are sending warning signals. It is a sinister calm before the big storm.
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During deflation brokers are hurt most – the dooms day for real estate, stock, bond and futures brokers
Special Correspondent
Real estate, stock, bond and futures brokers will see some worst of their days during 2007-2012. People will demand zero commissions and the brokers may be wiped out. During deflation Internet based zero cost transaction will become popular.
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