About

Ahead of the Curve provides analysis and insight into today's global financial markets. The latest news and views from global stock, bond, commodity, and FOREX markets are discussed. Rajveer Rawlin is a PhD and received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher, having followed capital markets in the US and India since 1993. His research interests include capital markets, banking, investment analysis, and portfolio management, and he has over 20 years of experience in the above areas, covering the US and Indian markets. He has several publications in the above areas. He currently teaches business and management students at CHRIST University. The views expressed here are his own and should not be construed as advice to buy or sell securities.

Featured post

Time Series Analysis with GRETL

This video shows key time-series analyses techniques such as ARIMA, Granger Causality, Co-integration, and VECM performed via GRETL. Key dia...

Wednesday, 21 October 2015

Interesting Market News and Views from global financial markets-3

1)Just 1pc of fund managers have beaten the stock market since Black Monday - Telegraph

A fund that aims to mirror Warren Buffett’s investment style has beaten the
FTSE since Black Monday, but the vast majority of active funds have lagged
behind"

2)The skew view - the latest signal of stock-market doom? - Reuters

Wall Street is forever on the lookout for ever more exotic indicators of impending doom for the stock market, and the latest measure to catch eyeballs is the CBOE Skew index .SKEWX which recently flashed panic signals like never before."

3) 38 Images of The 2015 Stock Market Crash

During the August 2015 stock market crash, markets around the world dropped significantly. What was the cause? The media blames China, but were they?"











4) Stock market crash sets new records in 1987 - New York Daily News

Stock market crashes in 1987, under a selling avalanche of over half a billion shares, as traders recalled the Great Crash of 1929."



















5) 3 Reasons Stock Market Corrections Are Inevitable - Motley Fool

You may not want the stock market to fall, but it's only a matter of time."

6) Deflation's least-understood danger is also its most serious

The world is grievously underestimating the danger of deflation."

Here are some more interesting market news and views. 

Saturday, 17 October 2015

Market Signals for the US S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning October 19

Indicator
Weekly Level / Change / Significance
Implication for
S & P 500
Implication for Nifty*
S & P 500
2033, 0.90%
Bullish
Bullish
Nifty
8238, 0.59%
Neutral**
Bullish
China Shanghai Index
3391, 6.54%
Bullish
Bullish
Gold
1177, 1.89%
Bullish
Bullish
WTIC Crude
47.73, -3.56%
Bearish
Bearish
Copper
2.40, -0.74%
Bearish
Bearish
Baltic Dry Index
754, -6.80%
Bearish
Bearish
Euro
1.1358, 0.00%
Neutral
Neutral
Dollar/Yen
119.46, -0.64%
Bearish
Bearish
Dow Transports
8079, -2.11%
Bearish
Bearish
US 10 year Bond Yield
2.02%, -3.62%
Bullish
Bullish
Nyse Summation Index
187, 350.17%
Bullish
Neutral
US Vix
15.05, -11.89%
Bullish
Bullish
20 DMA, S and P 500
1967, Above
Bullish
Neutral
50 DMA, S and P 500
1985, Above
Bullish
Neutral
200 DMA, S and P 500
2060, Below
Bearish
Neutral
20 DMA, Nifty
8025, Above
Neutral
Bullish
50 DMA, Nifty
8065, Above
Neutral
Bullish
200 DMA, Nifty
8376, Below
Neutral
Bearish
India Vix
16.27, -14.00%
Neutral
Bullish
Dollar/Rupee
64.71,-0.00%
Neutral
Neutral




Overall
 S & P 500
Nifty

Bullish Indications
8
8

Bearish Indications
6
6

Outlook
Bullish
Bullish

Observation
The Sand P 500 and the Nifty were up last week. Indicators are bullish. The Vix is back in complacency mode and transports are flashing warning signs. We are entering a weak period for risk assets globally and declines are likely in both indices in the upcoming months following this bounce.


On the Horizon
 China GDP data, ECB and Canada rate decisions, Canada CPI.






*Nifty
India’s Benchmark Stock Market Index


Raw Data
Courtesy Google finance, Stock charts, FXCM


**Neutral
Changes less than 0.5% are considered neutral


The markets rallied last week. Signals are marginally bullish for the upcoming week and this bounce is on the verge of completion. The S and P 500 and several global indices have completed massive bear flags which should resolve to the downside. The markets are expected to encounter resistance at higher levels on any bounces, with the 2035-2045 zone on the S and P 500 acting as major resistance. There will be more downside upcoming in the #Nifty and the S and P 500, with at least a retest of the lows for the S and P 500 near 1867 and Nifty near 7550 in the upcoming months. You can check out last weeks report for a comparison. You can also check out snapshots of the S and P 500 and Nifty Indices. Love your thoughts and feedback.

Tuesday, 13 October 2015

Interesting Market News and Views from global financial markets-2

1) Stock Market Crash October 2015? 9 of the 16 Largest Crashes in History Have ... - Charisma News

There is just something about this time of year that seems to be conducive to financial panic."

2) Street eyes stock market recovery, bank earnings - CNBC

Traders will look for further confirmation Tuesday that the stock market has found its footing, ahead of the first major bank earnings."

3) The Stock Market Is Poised for a Huge Selloff -- Don't Be Fooled by the Recent ... - TheStreet.com

The stock market's recent rally was in the context of a bear market and offers investors the perfect exit before the coming collapse.. S&P 500 Index(^GSPC)"

4) Are We Too Obsessed About Deflation? - Bloomberg

Madhur Jha, senior global economist at Standard Chartered, discusses the impact of global inflation and deflation. She speaks to Bloomberg's Caroline Hyde on "Countdown." (Source: Bloomberg)"



5) Deflation in Wholesale Price Index to decline:India Ratings - Moneycontrol.com

A reversal in the base effect will lead to lower deflation in the wholesale price index (WPI) and a rise in the consumer price index (CPI) in September says India Ratings"



6) QE Causes Deflation, Not Inflation

RT @DA_Stockman: QE Causes Deflation, Not Inflationhttp://t.co/Fytko0GlfO

Here are some more interesting market news and views.


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My Asset Allocation Strategy (Indian Market)

Cash - 40%
Bonds - 20%
Fixed deposit - 20%
Gold - 5%
Stocks - 10% ( Majority of this in dividend funds)
Other Asset Classes - 5%

My belief is that stocks are relatively overvalued compared to bonds and attractive buying opportunities can come along after 1-2 years. In a deflationary scenario no asset class does well other than U.S bonds, the U.S dollar and the Japanese yen, so better to be safe than sorry with high quality government bonds and fixed deposits. Cash is the king always. Of course this varies with the person's age.