The US being downgraded from AAA to AA+ is being touted as a huge and big event impacting the world economy. It is exactly like a cancer patient in ICU dying. Yes if he is a relative, the eyes do get moist. If he is very close, you might even feel devastated. However the day the patient was discovered as a cancer patient – and there was no cure should have been the day to feel devastated. Dying was inevitable, no?

The US was and continues to live far, far beyond its means. Downgrade is a logical consequence of spending much more than your income – surely even my grandmother knew it.

Implications for the world economy is difficult to calculate. If American companies slow down, Indian companies like Infosys will see a hit in their earnings. Of course a weak dollar is also not too great a news – unless you use the dollar to buy assets in the US. It is also a time when the markets will tank and there will be a good opportunity to buy…

Good dividend yield shares giving 4-5% returns look like a good buy….

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  1. Good dividend yield shares giving 4-5% returns look like a good buy….
    That is for the direct equities route. What about mutual funds?

  2. First of all Thanks for such wonderful collection of articles.
    co-incidently I just read one article on firstpost regarding good dividend yield stocks.
    Yearning for some more information on the same. 🙂

  3. Writing on the wall was clear from the sub prime days -0 Lahman collapse but all over the world, people prefer to behave like Ostrich – keeping their heads in sand, dirt rather than facing the situation first hand.

    A lot of people are making noise now – Sky is falling. Is it so?

    I don’t think so. I’m agree with the point, “The US was and continues to live far, far beyond its means. Downgrade is a logical consequence of spending much more than your income – surely even my grandmother knew it.”

    God save US of A.

    Amen.

    Thanks

    Ashal

  4. If throwing money at crises was all it takes, you don’t need Bernanke. Even I could do his job. Helicopter antics will not help for long. Americans will have to endure the short term pain for a brighter future. Their past is catching up with them. Postponing will only increase the suffering. Haven’t they heard the adage “A stitch in time saves nine”?

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