Nithin’s Portfolio

Capital Returns – Edward Chancellor

• The book states that the commodity is a new super cycle when it comes to economic growth and development

• First thing when world markets get hit the next of growth sprouts are

• Economic development

• Defense spending

• Railway spending

• Mining Tools

• Mining

• Cement

• Real Estate

• Home Improvement

• As per the capital returns beer/alcohol industry mainly plays a greater role due to hike in commodity price mainly barley and other commodities

Main beneficiaries would be B2B, B2G

• Capital Returns book states that low interest will kill the destroy the economics because of the low interest lending and less output and therefore bad debt and poor economy

• Mainly when it comes during capital returns

  • Banks especially
    • SMALL FINANCE BANKS will do well
    • LARGE BANKS will do well
    • MICRO FINANCE will do good when there is a time between national election end and reelection of national election

However one needs to watch out for Secured Lending, Unsecured Lending

All the above states well – only if we can move the needle of GDP, we need large amount of exports to happen in a big way to make economic progress.
This can happen via SERVICE sectors such as IT, PHARMA or in house MANUFACTURING such as CHEMICALS, ELECTRONICS.