Tidbits | wealthymatters

Three Stories on Why You Need a Plan #KhudKoKarBuland

February 25, 2016 Leave a comment

Here is the story of 3 wealthymatters readers. Real names are not revealed to respect their privacy.

The first is the case of a young man in IT. His goal was to be “financially free” ASAP. His strategy was to get himself sent over to Europe by his company and leverage his increased salary to book 2 houses in India and pay EMIs on them. Unfortunately his company fell on hard times and his Europe sojourn was cut short. In fact even his old job back in India was in danger. And neither property had appreciated much in the interval.

The second is that of a young man who made a good diving as an engineer working in oil rigs round the world. Money came easily along with a sense of adventure. He believed in living it up while he was still young.He thought retirement was far away. Unfortunately he met with a accident and had to spend much time in hospital. He never fully recovered and is having to try and set himself up in another career. Read more of this post

Filed under Tidbits Tagged with be prepared, financial plan, have a plan, Insurance, postaday, savings

China’s $34 Trillion Experiment Is Exploding – Kyle Bass

February 11, 2016 Leave a comment

wealthymatters Kyle doesn’t give China the 2 years that Soros gives to muddle through.Time will tell, who, if either is right.But they are both banking on a Yuan devaluation.A weak Rupee helps exports. Also the Rupee, along with the Won, Dong, Ringgit etc. are seen as proxies for shorting the Yuan. We Rupee holders had best look sharp.

Here’s Kyle’s letter to his investors:

“Dear Investors,

Over the past decade, we have worked diligently to identify anomalies in financial systems, governments, and companies around the world. We have been vigorously studying China over the last year, with the view that the rapid credit expansion in the Chinese banking system will result in significant credit losses that will require the recapitalization of Chinese banks and materially pressure the Chinese currency. This outcome will have many near-term and long-term effects on countries and markets around the world. In other words, what happens in China will not stay in China. Read more of this post

Filed under Tidbits Tagged with China hard landing, Chinese Hard Landing, Hard Landing, Kyle Bass, postaday, renminbi, renminbi devaluation, shadow banking, TBRs, Trust Beneficiary Rights, Wealth Management Products, WMPs, yuan, yuan devaluation

Astrology, Numerology, Palmistry And Wealth

February 4, 2016 Leave a comment

The immediate impetus to write this post came from watching this video today:

However, I’ve wanted to say what I do in this post for a pretty long time i.e. ever since I started noting the number of readers interested in my astrology , numerology, palmistry and other posts of a like nature and the anxious questions that are asked of me via comments and sometimes even e-mails.I fear that a lot of people are placing an excessive reliance on slavishly following fetishes and rituals to make money, rather than exercising robust common sense and improving their money making skills. Read more of this post

Filed under Tidbits Tagged with financial astrology, luck, numerology, palmistry, postaday

The Yen Carry Trade

January 31, 2016 Leave a comment

wealthymatters A carry trade is a strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.

Here’s an example of a “yen carry trade”: a trader borrows 1 million Japanese yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent amount. Let’s assume that the bond pays 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% as long as the exchange rate between the countries does not change. Many professional traders use this trade because the gains can become very large when leverage is taken into consideration. If the trader in our example uses a common leverage factor of 10:1, then he can stand to make a profit of 45%.Big outfits carry leverages of 100-300% Read more of this post

Filed under Tidbits Tagged with exchange rates, Inflation, interest rates, Japanese Yen, negative interest rate, postaday, Yen carry trade

Falling Oil Prices

January 29, 2016 Leave a comment

Falling oil prices are good news for oil refiners and companies using hydrocarbon based raw materials.

Falling crude oil prices help contain the import bill of countries like India. And a godsend when we are struggling with lower export earnings.

But there is the danger of salary cuts,layoffs and related problems in producer countries that might ultimately hit certain exports to these countries.

So which countries are likely to be the danger areas ?Take a look at the cost of production figures in various countries and check them against prevailing oil prices.

oil costs