#Linkfest: $400 oil, Promoters Accusing Brokers, Ponzi Startup Investing

At Capitalmind Premium, we have a very active Slack channel where we discuss a lot of interesting topics. In there,  a number of interesting links come our way. Here’s a bunch we found interesting:

1. Startups are the new rage, but Chamath Palihapitiya, a Silicon Valley investors, says they’re just a ponzi scheme – where you raise money to buy users, and that attracts even more funding and so on: https://www.cnbc.com/2018/10/10/start-up-economy-is-a-ponzi-scheme-says-chamath-palihapitiya.html

2. An interesting piece about Garware Technical Fibres (earlier Garware Wall Ropes) on how they’re scaling up in the Agri and Fisheries markets: https://www.moneycontrol.com/news/business/companies/garware-technical-fibres-could-transform-agriculture-and-fisheries-in-india-3028621.html

3. A company we’ve often discussed in Slack, but always felt a bit uncomfortable about is 8K Miles. And there, the drama’s continuing as the stock hits lower circuits, falling from Rs. 1,000 in Jan to Rs. 126, the promoters accuse brokers of illegally selling their shares:
   https://www.bloombergquint.com/markets/8k-miles-accuses-two-brokers-of-illegally-transferring-promoter-shares
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4. Who’s ready for $400 oil?
   https://english.alarabiya.net/en/views/news/middle-east/2018/10/14/OPINION-US-sanctions-on-Riyadh-means-Washington-is-stabbing-itself.html
5. As a counter to India’s high GDP growth rate numbers, we have someone looking at the situation in the macro environment, the business challenges, dollar funding costs and then, a conclusion that the cycle’s going to slow us down.
   https://www.thinkpragati.com/opinion/5791/the-indian-economy-heads-for-a-vicious-cycle/
6. The last 10 days of September 2018 was horrifying for bond and debt markets in India. But this may not be the case only with India. Countries like USA and China are not far behind. Why? Because most a large portion of their corporate debts are at a high risk of default.
   So this begs the question, are we in a corporate debt bubble which is waiting to burst? Find out here.
   https://www.mckinsey.com/mgi/overview/in-the-news/are-we-in-a-corporate-debt-bubble
7. Bear Market is a normal phenomenon in stock markets. However, it’s usually categorized as a period of panic, fear and restlessness. But doesn’t have to be the case if you know how to handle such times. Here’s a small article on the important aspects to keep in mind while operating in a Bear Market.​​​​​​​
   https://seekingalpha.com/amp/article/3806896-bear-market-playbook?__twitter_impression=true
8. Developed markets such as US, Europe and China have a huge bearing on the emerging markets around the world.
   https://integratinginvestor.com/emerging-pieces-from-the-emerging-markets-decline/
9. Technology is evolving at an unprecedented rate. We are now more connected than ever. This is causing ideas and innovation to flow without any friction. So it’s safe to say that tech is one of the driving forces of global economy. But that’s not the only one. There are 7 more. Know more about these 8 forces that are shaping the future of global economy.​​​​​​​​​​​​​​
   http://www.visualcapitalist.com/the-8-major-forces-shaping-the-future-of-the-global-economy/
   

10. Oh, and by the way, South Africa seems to be in a recession: https://www.bloomberg.com/news/articles/2018-09-04/south-africa-s-economy-slips-into-first-recession-since-2009

We’ll post such links every once in a while. Happy reading!