The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note by replying to this email or login here using your premium credentials.

A brief summary of some of the interesting things discussed there in the last few days:

#general: The Half-Truth of Prudent Private Sector Bank Lending

It is perhaps inaccurate to claim that India’s bad loans crisis is entirely due to a nexus between public sector banks (PSU) and crony businessmen. The column received wide feedback, with some wondering how private sector banks seem to have emerged unscathed in the current bad loans crisis. (Link)

#bonds-funds: Where is the money, honey? Why NCDs make a compelling case

(Link)

#general: PV Sindhu lauded with gifts: From BMW to Rs 2.05 crore and land

Telangana government announced a cash awards of Rs one crore. Sources said that Government is also likely to gift land to PV Sindhu. (Link)

#general: When Investing – What Matters More Skills or Luck?

If you’re like most people, you’ll find a reputable investment company and scan for the funds that have done well recently. The chances are good that you’ll buy one of these winners — and that you’ll live to regret the decision. In fact, professors of finance calculate that buying high and selling low costs investors 1 percent of their returns every year, a sizeable sum. (Link)

#general: OYO loss swells at Rs 351 crore during April-Dec in FY16

OYO Rooms has so far raised R790 crore from various investors, including Softbank, Greenoak Capital, Sequoia Capital and Lightspeed Venture. (Link)

#general: Markets Are Ripe For A Black Swan Event” – Why Most ‘Well Hedged’ Funds Won’t Survive

George Sokoloff, founder and CIO of Carmot Capital, recently explained why typical asset allocation strategies, including those employed by most “sophisticated” hedge fund managers, end up getting slaughtered during market shocks despite perceptions of being “well hedged”.  One has to look no further than the last “great recession” to get a glimpse of just how well the typical “hedged” portfolios fared during the last “Black Swan” event. (Link)

#general: Here’s When Investors and Traders are Most Bullish and Bearish

(Link)

#macronomics: Indians Spurn Snacks, Shampoo to Load Their Smartphones

A new wave of affordable smartphones has brought hundreds of millions of Indians online for the first time, giving them access to better education, jobs and entertainment. But there is one sector that isn’t thrilled with this development: consumer-goods companies. (Link)

#macronomics: RBS to start charging large UK clients to hold cash

Royal Bank Scotland is to charge some large corporate customers for holding their cash, the first sign the Bank of England’s decision to cut rates to historic lows is forcing lenders to collect negative interest from deposit holders. (Link)

#macronomics: Emerging Markets: More Than a Sprint

From negative interest rates to Brexit to the Fed, investors have understandably been preoccupied with matters at hand lately. But it may be a good time to shift focus and look longer term: Over the past few years, emerging markets (EM) have been quietly undergoing positive, fundamental change that we think will likely increase value in the asset class. (Link)

#general: Caustic soda: Anti-dumping duty extended by one year on imports from Chinese Taipei

The Finance Ministry has extended by one year the validity of existing anti-dumping duty on caustic soda imports from Taiwan (Chinese Taipei). (Link)

#general: The economics of Urjit Patel

Mint trawls through RBI governor-designate Urjit Patel’s papers and speeches to bring you a snapshot of his views on policy-related topics. (Link)

#general: Worried About A Stock Market Crash? Here’s How You Can ‘Tail Hedge’ Your Portfolio

(Link)

#stocks-fundamentals: Target Supplier Welspun Opens Probe Into Cheap-Sheets Allegation

Welspun India Ltd. will appoint an external auditor to investigate after Target Corp. severed ties with the textile manufacturer, which the retailer said had passed off cheaper cotton sheets as premium Egyptian cotton for two years. (Link1) (Link2)

#macronomics: Markets watching Yellen at Jackson Hole for hike hints but Rabobank says admitting the Fed won’t hike poses shocking risks

(Link)

#general: Sachin Bansal admits he was replaced due to performance

Experts feel his candidness is a strategic move that could help Flipkart win back staff trust, boost morale. (Link)

#general: Alcoholic drinks may get dearer as sellers asked to pay tax on licence fee

Your favourite tipple is set to get dearer. Eagle-eyed service tax authorities have tumbled to the fact that sellers of alcohol aren’t paying the levy on licence fees they pay to state governments. (Link)

#general: Goods and Services Tax – An Exercise in a Controlled Federalisma?

(Link)

#macronomics: Here’s proof that the economic recovery is over

The Non-farm Payroll Report claimed that 255,000 jobs were added in July on a seasonally adjusted bases.
This number was well above the 12-month average of 190,000. And according to the Bureau of Labor Statistics (BLS), a total of 1.66 million additional people have been employed thus far in fiscal 2016, making this the one bright spot in the economy. (Link)

#general: Stock market investor Vijay Kedia backs cybersecurity firm TAC Security

TAC Security Solutions, which provides cybersecurity solutions to corporate clients, has secured an undisclosed amount of funding in a pre-Series A round from Vijay Kedia. (Link)

#macronomics: A New Paper Reveals the Fed’s Policy Impotence If another Recession Hits Soon

Fiscal policy and negative policy rates might be needed, says Citigroup Inc. (Link)

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