Originally posted by: Surpremi
Abhi you said you a Finance major so I am will ask you finance related questions:
Thanks Supremiji…. I am honoured to have u on my MOTW thread😛
1. Do you feel the USA Prime Interest rate of 8.25% is justified when the comparable Euro rate is 4.5%?
Every country's Interest rate is based on its own Economy. The global economy does have an influence but the Interest rates in two countries are comparable only in theory and not in practice. The rate also depends a lot on Inflation rate in each country, Open Finance in the market and daily trading volumes. Japan has been Zero Interest country for years. So the rates really depend on each country's economy position
2. How do see the above spread change after 6 mths or so? why??
I see Euro Interest going up more and the spread to reduce with the effect of global economy.
3. US Dollar is at its weakest vs. Euro now - do you feel Euro has peaked out? If so, why?
Euro has come to effect very recently and it has captured the market globally. Now it is a recognized currency in the global market. Earlier since most of the Europe countries had different currencies. They never got the recognition. But now with European Union using Euro only, it is widely used currency alongwith USD. So Yes USD is losing its recognition day by day and trading in Euros has already started
4. Is Gold justified at $ 630 an ounce - where do you see Gold prices heading in the near term (3 - 6 mths) why??
In six months I feel Gold will reach $ 665-670
5. What do you say about the Bombay stock market - below 8 K or above 12 K in the next 6 mths or so?
Around 12K by the year end
6. Japanese Yen rates are at their lowest but just rose from 0 to 0.25%. Is it worthwhile to convert to Yen from $ ??
Sorry haven't studied much on this two currencies. But Japanies Economy is coming up from the dark slowly and steadily
7. Oil prices are hovering around 72 $/Bbl. Do you see 100 $/Bbl or 50 $ / bbl in 6 mths and why?
Oil prices trend has been rising for past few years and with the scarcity of resources and increasing demand It should reach $ 100 in near future
8. Real Estate prices have been booming in the main cities in India ? What do you feel is your outlook for the Real estate market in Des? Buy/Hold/Sell - why??
Hold and sell after one / one and half years. The economy is now stagnating with costs going up and profit margins reducing. The raises in salaries have stagnated. So the property market is supposed to be stagnated in another three years as per my analysis
9. Rupee is heavily tied to the US $ and $ gets 46.50Rs. now - what do you see happening in the next 6 mths to this conversion rate?
It will be in the range of 45-47.50 Looking at the trend.
Look forward to your answers and explanations with your answers too. PS: I am just an Engineer so please enlighten me !!
This is just my take on the issues👍🏼
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