Do it yourself

The rise in equity indices in the wake of global pandemic and its long term socio-economic consequences is keeping most experts busy. The central bank bashing is the favorite theme of market participants, like anytime in past 33years, ever since Alan Greenspan took over the Chair of US Federal Chairman and assumed the role of the "champion of stock markets" after 1987 market crash. Since then the markets have been overwhelmingly depending on the central bankers to support any fall in stock prices. Greenspan is criticized for both creating and causing the burst of dotcom bubble in 2000. It is popularly believed that the easy monetary policy unleashed by him during 1990s to support Clinton's deficit reduction program led to creation of massive dotcom bubble. It is also a popular belief that hiking rates many times by Greenspan in 2000 led to bursting of dotcom bubble. Both the popular beliefs are however contradicted by the empirical evidence. Greenspan was actua...

Continuing from yesterday ( see here ) Before I share my thoughts on USD and Gold, I would like to make it clear that I am a simpleton who: (a)    does not understand the economics beyond its first lesson which says all economic decisions involve a trade off and price of things having economic value is determined by their demand and supply at that given point in time; (b)    does not know how to play with data on Microsoft Excel Sheet; (c)     likes to discover investment themes in streets, markets and fields; and (d)    seriously believes that numbers invariably follow the good story. In my view, the currency of any country is nothing but an “unsecured zero interest bond” issued by the respective central bankers. This bond usually loses its value with the passage of time due to inflation. Since 2008 global financial crisis, central bankers in the developed world, especially US Federal Reserve ...