Skip to main content

USA Debt Limit Drama !

It has been few weeks since I got chance to write my blog. Lot has happened since I wrote about summer blues market was going thru. I was busy taking kids around. Just came back from Alaska cruise vacation - got nice break !

Markets have gone nowhere in last few weeks. It went up due to some optimism on earnings reports and came down hard last week due to all drama in Washington. I am sure markets did not wish for kind of grid-lock they saw last week. Be careful what you wish for ! Tea-party politicians were acting all crazy not even listening to their own GOP leadership. No wonder their un-popularity has gone from 22% last year to 47% this year. GOP leadership should learn from last week's events and be careful whom they put on ballot in 2012.

After hectic back-door negotiations, finally Washington has come to an agreement on debt-limit and spending cuts. At this time, any deal is good deal since it would save AAA rating for US debt. Futures are reacting positively and we should see up day in markets tomorrow. However be careful in putting new money in markets since this drama would continue till next year.

Right now, I am looking at some of the Chinese and Indian Internet companies to find some value. Check these out for potential reward/risk: RENN ($10), DANG ($11), REDF ($9) and SIFY ($4). Almost all of these are mini-versions of some companies in USA. e.g. RENN is Chinese FB, DANG is Chinese Amazon and so on. Hopefully these companies would provide same type of returns in what Baidu did. However wait till results for their first quarter as public companies are out.

That's all for now. Have exciting week !

/Shyam

Comments

Post a Comment

Popular posts from this blog

Clicks to Tokens: Will 2026 Echo 1998's Boom or 2000's Bust?

My "blogging" was in hibernation last 8 months due to my self-imposed restraint given the environment as well as built-in inertia to get started despite so many interesting events and markets reaching all time highs after taking a big dump around "Liberation Day" in Apr...Around that time I had the blog ready that it would be repeat of Mar/Apr 2020 panic and recovery during onset of Covid Pandemic. The hunch happened to be correct and I was glad that I could keep and take some positions which I am still holding especially around AI theme. But that was then...as 2025 is about to wrap up in 10+ weeks, let's look at what's in store for rest of 2025 and 2026. And what's better time than to start writing again just before one of the most important week on the calendar with multiple key events coming up next week... Fed meeting to decide the course of interest rates - it's almost guaranteed that Fed will cut rates by 25 basis points (2nd time in 2025) and...
Post a Comment
Read more

2026: The Year of Convergence – Melt-up, Moonshots, or Mid-cycle Correction?

Happy New Year! After another period of self-imposed hibernation from the blog—partly due to the festivals, travel, intertia and partly to watch the dust settle on a chaotic 2025—I decided to use the quiet of this New Year’s morning to finally reboot.  Looking back at my October post,  “Clicks to Tokens,”  the hunch about the AI theme held firm. We spent much of 2025 debating whether we were in 1998 or 2000. As we enter 2026, the answer seems to be "neither and both." We have the roaring optimism of the 1920s fueled by "Silicon Spirits," but with the high-speed volatility of the 2020s. So, as the calendar flips, what is in store for 2026? Markets may experience melt-up (S&P touching 8000),  with some moonshots (like SpaceX and OpenAI) IPOs or even see mid-cycle correction bringing down S&P to 6000. That's a wide range and will be decided by Four R's... Here are my thoughts on the " Four R’s ":  Rates, Robots, Rotations, and Real Assets. 1. ...
Post a Comment
Read more

And the Oscar goes to...

It's Oscar Sunday and time for predictions for few categories - before I digress into talking about drama in DC or markets.  First of all, I want to recognize the damage LA fires have done to the beloved areas of Los Angeles and impacted families across all spectrums. My heart goes out to them and wish them recovery and rebuilding of their lives... This year's Oscar nominees and post nomination period had been interesting to say the least. Due to this, the field is wide open in almost all categories and that's what makes prediction game so interesting. Just to set expectations, I would consider a win if I get even 50% predictions correct given the dynamics of nominees this year. So here are my predictions - "And the Oscar goes to..." Best Picture - Anora (surprise could be "The Brutalist") Best Director - Sean Baker for "Anora" (Surprise could be Brady Corbet for "The Brutalist") Best Actor - Adrien Brody for "The Brutalist"...
Post a Comment
Read more