jan 30th, 2007
the extreme cold weather that hit california recently is supposed to be el nino related. and we know from good old mike davies (late victorian holocausts: el nino and the making of the third world) that the result is drought in the deccan.
what does this portend for the indian stock market? a sharp drop in 2007 as the rains fail?
with inflation already shooting up, this is a scary prospect.
if stocks are going to drop, have to abandon the equity mutual funds. if inflation is going up and interest rates too, then have to abandon the bond mutual funds.
if both are happening, then cash is king, i suppose. this might also burst the real estate bubble. i hear prices have stabilized in bangalore and delhi after shooting through the roof recently.