Moneymunch.com

The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.

CPI inflation to moderate to 7% by Mar ’14

0 1992

CPI inflation to moderate to 7% by Mar ’14: Morgan Stanley

Terming the consumer price index based inflation as critical to assess the domestic economy in the current environment, a research report by Morgan Stanley said the CPI reading is likely to moderate to around 7 per cent by March from the present level of 10.9 per cent.

 “We expect the CPI inflation to moderate from 10.9 per cent currently to around 7 per cent by March,” the report said. Giving the rationale behind such moderation, the report said factors like impact of slower government spending, slow rural wage growth among others, would help in reducing the sconsumer inflation.

 “Since last September, total government spending has been on a decelerating trend. Moreover, the government has controlled expenditure except interest and subsidy payments… as the government delivers fiscal consolation, it will help contain aggregate demand- thus reducing inflationary pressures,” the report said.

 It further said agricultural wages have shown signs of moderation, which would help in easing inflation pressure. “We believe this moderation, after almost five years of acceleration, will also help to lower food production costs and bring about a moderation in food and hence overall inflation,” it said.

 The report also said that other factors like slower rise in global commodity prices like oil, moderation in asset prices such as housing and slower growth in domestic demand would also help in containing CPI inflation.

 “We believe that the sharp slowdown in domestic demand will finally start weighing on CPI inflation trend over the next six months,” it said. Referring to high current account deficit and fiscal deficit coupled with slowing growth, the report said that despite growth concerns, the worst may be behind.

 “Though trailing macro data points are a cause of concern, we believe that the worst may be behind with regard to macro stability indicators. “The government has initiated steps to correct the bad growth mix (high fiscal deficit and low investment spending). We believe this will help to gradually improve the macro stability indicators,” the report said.

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

<!–more–>

Gold Bulls : Do or Die!

0 2287

I was going to write about the Risk on Risk off trade this weekend but with the big move up in gold on Friday I thought we should look at gold instead. As you know, gold along with silver, broke down from their respective triangles this week which we have been keeping a close eye on.

This next weekly look at the GLD shows the 2008 uptrend channel with all the smaller red consolidation patterns that formed during that advance. You can see how perfect the blue rectangle is with the price action testing the bottom blue rail this week. The rectangle is a completed pattern that still hasn’t told us yet which way it will break out. As it has formed below the all-time high made back in the fall of 2011 the odds favor a breakout through the bottom of the rectangle. Those are the odds but if the GLD starts to rally above the 65-week moving average then we would have to reconsider. For right now a bounce should be expected as everyone and their brother knows this is the bottom of the trading range. The big question is, How Strong are the Bulls? This is where talk is cheap. The bulls need to walk the walk and show us they mean business.

I would like to leave you with one last chart that is a combo chart showing gold and top and silver on the bottom. The blue shaded area shows how each moved to their bull market highs at different times. As you can see silver reached its parabolic high first in April 2011 while gold languished. There was about a 2 month correction and then gold took off to make its all-time high at 1920 while silver fell way short of reaching its all-time high made in April. This was a major negative divergence between gold and silver. When I look at this chart it tells me they both got their parabolic move albeit at different times and that a good correction was at hand. As you can see once they both had their highs in place, they declined sharply together to point #1 on their blue rectangles. They have been trading in lockstep, for the most part, for the better part of 20 months or so. Both are testing the bottom blue rail of their respective rectangles as we speak.

We are at a very important juncture right here where the gold bugs will have to step up to the plate and move the precious metals higher, not with talk, but with action. Believe me, I will have no problem shifting from a bear stance to a bullish stance if the charts shows that is the case. For right now it’s up to the bulls to show the way. I will be watching their every move to see if they really have what it takes to move the precious metals up. This should get everyone up to speed on gold. All the best…Rambus

Forgive them anyway

0 2029

Sunrise

The Final Analysis

People are often unreasonable, self-centred: Forgive them anyway. If you are Honest, People may cheat you, but be Honest anyway. What you spend years to build, someone could destroy overnight. Build anyway. The good you do today, People will often forget tomorrow. Do Good anyway. You see, in the final analysis it is between you and God; it never was between you and them anyway.

Continue reading

Silence lies the ability to listen

0 1921

Sunrise

Today’s Thought

The Wonder of Silence

In silence lies the ability to listen; to listen to ourselves, to others and to God. Listening is a lost art. Without it, we cannot communicate, we cannot relate to each other, and so we cannot live life meaningfully. We need to learn to listen. Sitting in silence allows us to listen to ourselves and to understand. This silence can heal. The worries, the pain can be healed when we listen. Spiritual medicine is ever-present in the soul. Whenever we need it, to whatever extent we need it, we can find it within.

Continue reading

ECB keeps rates unchanged

0 2444

ecb

Main rate stays at 0.75%.

The European Central Bank has kept eurozone interest rates on hold. The main refinancing rate stays at 0.75%, where it has been since July 2012.

Although the decision was widely expected, some analysts expect the ECB to cut rates in the coming months.

Mario Draghi, the president of the ECB, will hold a press conference later this afternoon to explain the decision.

Continue reading