Brave new world: Peak pessimism in India; gold, silver miners never looked so appealing

Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this space.

With turmoil felt all over the world, people in India were the most pessimistic about the economic conditions in their country. Almost 80 percent said in a recent poll by McKinsey that the economy was worse compared to six months earlier.

I think we have reached peak pessimism in India.

US fiscal position today reminds me of Germany before hyperinflation.

US fiscal deficit is blowing out of proportion and the Fed has already started doing QE because market is not able to absorb debt issuance by US treasury.

Gold & silver miners never looked so appealing: We could be in the early stages of a multi-year bull market for this historically depressed industry.

Inflation not in price but assets: European interest rates are in negative territory, but economy has not revived. Smart investors are buying real assets (gold & real estate) to maintain the purchasing value of their currency

Winds of change: The unloved emerging markets seem to be breaking out here as per Nautilus Research