Sell US, Sell India, Hold Cash

Sell US, Sell India, Hold Cash

It seems to be in bad taste but it is better to stay as far away from controversy as you can..and this includes RIL, REL, RCom, RNRL, Adlabs, RIIL, RPower, RPL, Rcap & Jai Corp..and shoot the messenger who asks you to touch this group of companies. Delhi will remain in a Winter slumber just like it has for the past 6 decades and I hear Bombay too has caught the winters this time.

Quite like Feb-March 2000, we still have enough round of trader linked business losses to be booked..these may happen before March 15, 2008. So while people may hold for the Budget, the Smart guys may actually be selling.

Take your call...but with enough conscience and not because of some fund house drivel.

In the meanwhile, just read what the US is going through and you will get an idea of how dire life can become, so soon.

The debt disease we've been warning you about, long subdued and dormant, is returning with a vengeance.

You can see its symptoms everywhere — in the massive losses on Wall Street ... in consumer credit turning sour ... in collapsing bond insurers ... in sinking corporate earnings ... to recession hitting hard.

It's on the evening news; it's all over your daily newspaper.

So you don't need an economic treatise — from me or anyone else — to know what's happening or to recognize its severity.

This morning, to help underscore the immediacy of these events — and highlight the urgency of your personal action plan — I will be very brief. Here's what I recommend:

First, don't underestimate the magnitude, breadth and duration of the debt disease.

The debt disease has already metastasized and spread — from $824 billion in subprime loans ... to the entire $13.5 trillion mortgage market ... to nearly all other forms of credit markets, including credit cards, auto loans, traditional commercial loans and the nation's giant derivatives market.

The debt disease has already infected U.S. residential real estate, mortgage-backed securities, collaterized debt obligations (CDOs), high-yield corporate bonds, and a whole series of vulnerable sectors in the U.S. stock market — builders, lenders, technology companies, retail chains and more.

Next, it could strike many investments thought to be in safe harbor:

Commercial real estate, investment-grade corporate bonds, tax-exempt bonds, and regional banks.

Second, Do Not Let anyone talk you out of selling Junk Stocks like HFCL, Deccan Gold, Sahara Housing.

Third, Build As much cash as you can.

Fourth, Buy just about 10 per cent of your portfolio into Gold.

by:MAVERICK