16. When I tell investors, that 15% is not a given anymore, people think I'am a bear
17. I'am not a bear, but a believer in moderate equity returns, since we don't have money printing in US & Europe. If Fed restarts QE, I will change my view
“About 25% of India’s air traffic passes through their airports & 25-40% of India’s cargo volume goes through their ports. The biggest competitors are actually the Indian govt, not the fastest running horse in the race.”
2/6
On Adani Green -
“Adani Green Energy is by far the fastest & largest pvt sector, green energy co in India. They’re rolling out almost 3 GW annually. So, so I think some of their assets are fantastic. Countries like India need to make the energy transition"
Bigger question - Is Japan (finally) exiting deflation ?
10 points.
1. Japan has been in a DEFLATIONARY phase for 25 years.
2. Companies refrained from passing through costs to consumers even when input prices rose. Instead, they cut wages.
3. As a result, Japanese companies saw 7–8% avg annual earnings growth. In the same period though, Japan's economy trend growth fell from 4% in 1990 to 0.2% or so now
4. So Japanese corporate earnings growth outpaced GDP growth quite handsomely
5. BUT this corporate behavior created DEFLATION
6. To explain - households have not envisaged income growth because wages have not risen & personal consumption/economy thus moved towards a contractionary zone
3. KEY - One bag of Uurea would translate into 100 bottles of Nano Urea. One bottle of Nano Urea is as effective as one bag of Urea. So efficiency bgoes up 100X
4. Scientists estimate that 2/3rd of all urea consumption can be replaced by nano urea
1. Gazprom announced on Friday evening an indefinite shutdown of Nord Stream 1 gas pipeline. This seems to be in response to G7 decision to impose a price cap on Russian oil.
4. Moscow justified previous supply cuts by the absence of a turbine sent to Canada for repair & which could not be returned to it because of Western sanctions.
5. Germany, where the turbine is located today, assures it is Moscow that is blocking its return.