Small Break

They say that sometimes small things can bring big gains... just as much happiness and satisfaction as big things. Time is really precious thing and its becoming more and more scares. We need to take small breaks to pause for a little in this fast lane life. Moreover, it has becoming increasingly important that we mange the equation of the little time you have to spend it happily and on the budget. Now that I have been running around with two little toddlers who demand my attention every minute of the day, I am realizing how important it is to break away for few minutes. You have to spend time for yourself. It maybe in very small increments but its so much needed. A tonic to refresh your mind from stress, traffic, exhaustion, noise and what not... a small break to gain better perspective at things all over again. It maybe just few deep breaths or a quick shut eye meditation away...

And indeed there was a rally

In my last post, I was optimistic about the rally on the wall street over last week. And indeed there was a rally... Al bite maybe for a short time but it came at a time when everyone desperately needed a ray of hope. Nobody really knows if the stock market has seen the bottom and will move up from here. It could very well turn its back and start its downward trend again leaving us with false hope. Many of the wiseguys on the financial news channels sound convincing on both positive and negative predictions. Currently small cap growth,large cap growth stocks look attractive. Consumer retail sector is promising and so is technology. Looks like financial services stocks have bottomed out and showing some positive turn ... No one is smart enough to predict the future markets accurately but optimism sure matters. So Cheers to the rally and hoping for more !!

Hoping for a rally

It has been a roller coaster ride over a year in the market; a ride that just seemed to continue to go downhill with no bottom in sight. It has been an incredibly difficult year for everyone. Navigating through these challenging markets is unnerving…..but there seems to some ray of hope at least for short term….. Legislative actions aimed at mark to market accounting principles could trigger a rally in financial stocks and the overall stock market. In fact, some wise guys are predicting to see a rally of up to 25% in stocks. There is also an expectation that the so-called Uptick rule, which limits short-selling in stocks, could be restored soon. It is somewhat believable since Stock markets have been so beaten up and equities have been so oversold. One will have to watch for realistic trends that are sustainable. The current scenario still dictates the defensive strategy allocation for underweight in stocks and overweight in cash and bonds. However one can certainly spot some improving trends in utilities, health care and technology sector besides ever green energy and bio tech. When market does turn around the small and mid cap growth stocks are expected to outperform large cap growth and large cap value stocks. This widely popular theory should hold true. And this should provide some great incentive for bargain hunters. Though one has to keep in mind that short-lived rallies are common during periods of extended declines as the market searches for a bottom. I think buzz word for current scenario is caution with optimism…. Cheers!

Glittering Gold

In my previous post Trifecta, I had mentioned about recessionary pressure in all three major aspects of the global economy…namely falling prices in Stocks markets, Crude and Gold… looks like that trend is about to change… The gold is starting to venture out on its own... Based on conventional wisdom it was expected that the gold and precious metal prices usually showed inverse relationship to stocks and oil…however this time that trend was bucked for quite some time… Now though it appears that the Gold is reversing that pattern… the Gold is shining all over again………. For Gold investors it is good news but realistically this trend will not help the recession scenario much…..In the precious metal sector the silver is scaling new highs in the prices and so is platinum. The private investors, mutual funds and hedge funds returns should sizzle at least for this sector. In that sense it appears that precious metals are after all precious despite inflation or deflation. This provides a good indicator for the asset reallocation strategies as well. I am not sure on a large scale basis how many small investors own a gold or similar metal but current trend proves that a good % of the portfolio invested in gold could bring in good results. I expect the gold to keep rising based on current global economic scenario. Though dollar is gaining strength due to weaker currencies else where, the demand for gold as a safe heaven is going to be higher for quite some time…and that should push prices up at new record levels. So for now all that glitters is GOLD after all …. At least a small portion of the investors have something to cheer about…

My Musings

Slumdog Millionaire…..if someone thinks I am adding my two cents to millions and millions bites that has been attributed to this film, you guessed it wrong…there is not much to add about the movie from my side… What I am trying to pin down is my exact feelings about such rag to riches stories glorifying extreme poverty in developing countries. Poverty makes me sad no doubt but I have lived good years my life side by side with it… Growing up in India, there is no escaping these scenes of sad plight of human life… slums and posh locals almost live hand in hand in urban India and people mostly have accepted that … What makes me wonder is…. Why the western world is so much intrigued by the poverty in Asian and African continents….It almost makes me furious when I read that throngs of visitors are lining up to see the slum world of Dharavi… that’s to me is sick…poverty and slums are all over the world .. those who are so curious to see human sufferings ;why don’t you venture out in the welfare projects and public housing neighborhoods of your own city?… If you care so much about the poor people why don’t you help the one in your own locality? I guess most of these crazy curious visitors won’t dare to put out feet in such neighborhoods (popularly called hoods, ghettos and barrios of the west) why would you then glorify the slums in Asia and Africa? In US and Europe poverty is like a taboo.. Behind the glitz and glamor of all big cities lies the sad fact of slums. Every town has its share of not so fortunate folks but western world has done excellent job of masking it. In US and Europe such poor people get congregated in different neighborhood almost like a social outcast… whereas in Indian subcontinent it exists hand in hand all over…that’s the difference. You will need to make a special trip to see these areas in US and Europe otherwise you will be fooled to believe that it’s a land of riches only…. Now that I have observed both these continents for a good amount of time, all these emotions came to surface after watching Slumdog Millionaire….Asian poverty is intriguing because it can win accolades of fame and fortunes for westerners… and that why this years Oscar winner movie is disappointing… for that matter, if I recall correctly, it’s the same rhetoric last few years… disappointing Oscar winners.. Then again why do I need to watch Oscar movies as the ultimate? I remember how stupid it was to see last summer Olympics when NBC made it seem like All American sports extravaganza… funny how the world of propaganda publicity works!! Thank god I have internet and thank god we have Google….. I can keep myself informed, entertained and educated the way I feel right ………...free, independent and unbiased …………. Peace!

Spend More and Save the Economy

The US economy flourished in the past by encouraging consumers to borrow and spend rather than save. The recent meltdown has created havoc on the consumers. Drastic spending cuts by the consumers have added exponentially to the recession and more than one can imagine. Government has been trying for some time to get its banks to lend and its citizens to borrow again. Even though the excess borrowing caused the problem in the first place, it appears that that may be the only way out of it as well. Historically low interest rates encouraged people to borrow and banks to lend. US personal saving rate fell from 12 % in the early 1980s to -1% in 2006. It appears like a classic catch 22 scenario where in order to revive the economy; the private consumption needs to be revived as well. Based on this thought, I was trying to do my share of spending ;) as if I need any extra reason to shop…Now my passion to shop has a worldly cause associated with it “spend more and save the economy ” …So what I have closet full of clothes, accessories and everything else that I really need.. So what my boys have roomful of toys and more clothes than they can actually wear…. And so what my house cluttered and stuffed with books, things, electronics and what not…. And so what home cooked meal is more healthy and nutritious than the outside one…Once you get bitten by this “spend more and save the economy bug” nothing should stop you from spending…. And that’s when this word “Recessionsita” caught my attention. Macmillan Dictionary website declared it the word of the week. It is one of the top fashion buzz words of 2009. The word recessionista means originally a person who enjoys dressing fashionably on a budget. It also encompasses the universe of dining, entertainment and beauty. How clever I thought that few intelligent minds are trying to cash in against these destitute situations. . If people can be so ingenious at the time of crisis of this magnitude, one must appreciate their efforts. As the world economy tanks, people are finding pleasures in finding bargains rather than splurging. Even for the well offs its beginning to appear gauche to show off their conspicuous consumption. So the new buzz word is spending smartly but cautiously. . It is very chic to save but even more chic to get a deal. Any girl wants to look stylish but also be perceived as smart. And no one likes frugal. So let’s do our share of reviving this economy. And maybe- just maybe we will help save few jobs along the way….The consumer universe has opened up as a bargain basement and let’s go find our treasures!

My Thoughts on Octuplets

The last few weeks this story has been lurking around in my mind. I have been reading in bits and pieces about the birth and related stories of the mother giving birth to octuplets. I am a mother. A mother of twins who survived an ordeal of complicated pregnancy and premature delivery. I know how hard it was to see my tiny twins fight for survival in early days of their life in NICU. And now as me and my husband are raising these toddlers, our constant struggle to give them as much love, attention and care as any other singleton child would normally get. Deep down in my mind that guilty feeling bothers me and nothing will make up for that. To me, how you raise your children is more important than just having them. Children are your blessings but also your responsibility of the highest order. All these feelings came to surface again when I read about the mother giving birth to octuplets. What was she thinking? If at all she was thinking? How can you be so selfish to have such high number of multiples just to make up for your troubled childhood and loneliness? I read that she already has six children before this. If she really wanted to have a huge-large family, why didn’t you think of adopting? There are thousands and thousands of orphans who could use loving and caring home. Was it necessary to put her and her babies’ health to risk? Research proves that more premature the babies are born, the greater risks they have of facing significant lifelong problems .Why did this mother put these babies through this ordeal? And who’s paying for the NICU and related costs? I know how terribly expensive it is for single NICU stay and in this case we are talking about 8 babies for several months. She’s going to be a welfare mom and really how can she make sure she can provide financially for the 14 children she's responsible for? As much as I would hate lawmakers and governments to decide how many children one should have, these types of irresponsible behaviors make me wonder if indeed law should ban giving birth to such high order of multiples. I can understand using reproductive technology for someone desperately trying to create a normal family, but why would someone who already has 6 children go through that? This controversial decision is anything but a heroic case and the mother should be condemned to the highest possible extent. PS: To all my blog readers, for this post, your comments are most welcome. I know its controversial topic and you may have differing opinion. Just go ahead and share…