According to Peter Lynch you should not worry too much about macros. However when you do look at some industries you wonder whether the model allows you to make money at all. For example the airline industry is so badly beaten down that whatever happens I am scared to buy shares of Spice Jet or Jet Airways. This in spite of the fact that I am happy with the services that they render.

Similarly forget the stock exchange indicators from the USA, the real estate indicators are scary. Very very scary.

Too many houses on default, too many in the ‘delay and pray’ category, too many in the repossessed list, many refinanced and re-default category!

The losses that the banks can take is again likely to be in billions of dollars. If Citibank takes a $ 50 billion hit in its books what will it do to the industry? Or the stubborn employment figures which are refusing to go up?

Scary! Any thoughts welcome!!

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. should only get worse.a lot of the state govts and municipalities are all upto the gills in debt and massive layoffs AND cut in services are around the corner.ofcourse they- fed can print more money and pretend that the problem is solved.its like the ostrich hiding its head in the sand

  2. Subra
    Money and Markets a free news letter from Martin Weiss Inc. is good source of information for understanding America’s current macro economic scenario. Of course they would blow the balloon and persuade the reader to buy their services. But there is a lot of reality/truth in their findings.

    http://www.moneyand -market

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.