I used write once in a while about the economically austere and sensible former Indian Central Bank Chief, Raghuram Rajan. He was essentially pushed out by the Modi government, which had other ideas for goosing the economy.
Today’s result? A 6.5% burst in the India iShares INDY.
It was important because… this…
From NFTRH 568 using the weekly chart of BSE above: “So far the India re-buy at the trend line is working.”
Well, as of yesterday’s close it was no longer working. Now? Working again!
Let the global fiscal stimulus games continue, and boy if Powell ever lets Trump play in this global sandbox, is it going to get interesting.
It’s a lot of things, but in its final analysis it is a game of policy…
So for now I will hold INDY (fortuitously, just yesterday I bought some INDA for my kids’ accounts in a dumb luck exercise) and evaluate this and other reflationary attempts along the way. With one of the last soldiers of austerity out of policy and back in Academia, who’s to stop the gambit until it stops itself?
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