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Boris Chikvashvili

Boris Chikvashvili

Boris Chikvashvili was supposed to be a theoretical physicist (Russia+Jerusalem Hebrew University, MS Physics, with distinction, toyed with QUARKS). Somewhere on the road to PHD…

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BRICs Are Falling, India, General Market Survey

General Market Conditions

STOCKS

We believe that we will get chance to buy market cheaper later this year/early 2013.

Meanwhile the markets could get cheaper anywhere between 10-30% For exact timing please search subscription at our site.

BONDS

In 2008 We published here about BONDS predicting the secular low. Well, we did have much lower interest rates since then, but interestingly enough the 30 Year rates have only marginally undercut levels of 2008 and now are poised to move higher.

GOLD

While there was a lot of trepidation about GOLD this year , so far, we stuck to our outline that projected higher prices, at least into Spet 17th. Please see graph attached.

OIL

We were negative about OIL entire year based on our OIL predictor outline,and especially at the CRUDE=110 top, which was exactly our AHAP1(Annual High Attraction Point 1) Projected since early 2012. Predicting little advance from here as the war mongering died down in Middle East (how many times already(:-). Do these people how to whip up higher OIL prices or what?(:-

My opinion on energy is well known.given the abundance of conventional and possibly new energy sources (COLD FUSION included) ENERGY SHOULD BE CHEAP and only intractable coalition of greens war mongers and tax collectors, all over the world keep it up to limit the freedom and innovation in the world. nevertheless, there will come time when that must happen as the WORLD NEEDS REBOOT and cheap energy is the best way to do just that.

EURO

The EURO has supported , again, exactly at our ALAP1=1.20XX ( Annual Low Attraction Point 1) projection.

It is in an intermediate term downtrend, with big spikes in between.


Larger Image

In early 2011 we started to alert our subscribers about the dangers in the so called BRIC countries. We do not have 100s of reseachers , so there must have been some baseline prediction to build this thesis on.

Yes, there was. We based our forecasts on the currency value prediction, which has served our clients for many years. It was always clear to us, that if we could predict currency direction then we could predict, reasonably well, everything else relating to a given country.

THE MONEY/CAPITAL FLOWS IS THE BEST PREDICTOR OF ECONOMIC ACTIVITY.

Thus, we figure the economy, by simply predicting future currency moves. The result then was, that in 2011 we said, clearly BRICs indicate troubled currency and , therefore, economy.

Indian RUPEE has undergone a massive 600% devaluation since 1970s.

This has allowed Indian economy to prosper and currency to strengthen in 2002/2008-10 period.

We are afraid that has come to an end, as the money did not go into good societal distribution to create basis for real long term progress.

And even if we are wrong on Social issues hurting INDIA, our currency projections show no easy future path.

 

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