On Slack: Astronomical Pricing, Black Money, Broke-Ass Millennials, Committing Fraud, Dumb Deal, Full Remonetization, Robo Advisor, Union Budget 2017 and more....
Slack is where the daily action happens. We take pride in our diverse and always helpful member community which includes value investors, fund managers, and professional traders. Here is a brief summary of some of the interesting things discussed there in the last few days. Find all older ones here.
#general: Union Budget 2017: Dominance of FIIs will be over in next 5-10 years: Prashant Jain, HDFC AMC
In a chat with ET Now, Prashant Jain, ED & CIO, HDFC AMC, says the local flows, the local investor will play a very important role in the markets in India. Economic Times
#general: Black money: It could be Rs 3 lakh crore or Rs 7.3 lakh crore, says Economic Survey
The amount of potential black money in the system could be Rs 3 lakh crore or Rs 7.3 lakh crore, says the Economic Survey. Economic Times
#general: Ensure Full Remonetisation Of Banned Notes: Economic Survey’s 7 Warning Signs
The Economic Survey 2016-17, a prelude to the budget was tabled by Finance Minister, Arun Jaitley today in the Parliament. And for the first time, the finance ministry’s economic team headed by Chief Economic Adviser Arvind Subramanian has given a broad overview of the impact of demonetisation on the economy. Boom Live
#OfficeHours w/ @MichaelKitces - Betterment Raises Fees On Large Accounts & Pivots To Human Advisors! https://t.co/fIHwTxGpkm
— MichaelKitces (@MichaelKitces) January 31, 2017
#macronomics: Donald Trump calls drug pricing ‘astronomical’ and promises changes
Donald Trump has threatened to have the government negotiate prices directly with the pharma industry on behalf of Medicare and Medicaid, which are world’s biggest purchasers of health-care products. Livemint
#general: Research: Firms Give More Stock Options When They’re Committing Fraud
Although we examine stock options grants as the primary mechanism for employers to discourage whistleblowing, there are others tactics firms can use as well. HBR
#general: How to Produce High Quality Investment Research
One of the benefits of advances in technology is the fact that we’re overflowing with information. This can be a double-edged sword. As Chuck Klosterman said, “We now have immediate access to all possible facts. Which is almost the same as having none at all. A Wealth of Common Sense
#general-from the past: What is Outcome Budget?
Well, Finance Minister P Chidambaram might just have the answer to that: in the form of the proposed Outcome Budget, which to be presented in Parliament on Thursday. Rediff
#general: A Budget Reader for 2017–18 Indian Budget
Here’s a quick reader for a few of the big things that are changing in the Government of India’s budget this year. Context, not just predictions. Medium
New Betterment pricing puts price to:
- allocation / servicing
- cost of 1st phone call with advisor
- all incremental calls with advisor pic.twitter.com/1ujlhJGUVP
— Jake (@EconomPic) January 31, 2017
#general: Demonetisation 2.0
It has become manifestly clear that it is a political move without an economic rationale. Indian Express
#general-from the past: Centre’s non-tax revenue surges in first half on economic services
The government’s revenue increased by 22.8 per cent to Rs.5.13 lakh crore in the first six months of this financial year compared with Rs.4.17 lakh crore in the same period of the previous 12 months, with non-tax revenue growing by a whopping 51 per cent. The Hindu
#general: Budget 2017: 100% penalty on cash transaction above Rs 3 lakh
Anyone transacting in cash above the newly imposed limit of Rs 3 lakh will have to pay a penalty of a similar amount, according to a top government official. Hindustan Times
Do you believe it? The Obama Administration agreed to take thousands of illegal immigrants from Australia. Why? I will study this dumb deal!
— Donald J. Trump (@realDonaldTrump) February 2, 2017
#general: Claiming home loan interest tax break on rented house? Budget 2017 has bad news for you
The Union budget 2017 has severely curbed the tax benefit on the interest paid on housing loans in case of properties that are rented out or are ‘deemed let-out’. Economic Times
#general: A Siri for Your Finances? Digit Says Trust Me
The fin tech startup is working on algorithms to help you manage your money. Bloomberg
#general: Budget 2017: Paying rent over Rs 50,000 a month? Get ready to deduct 5% TDS
Individuals and HUFs paying rent of Rs 50,000 or more per month will now have to deduct 5% tax at source i.e TDS at the rate of 5%, as per Budget 2017 proposals. Economic Times
#general: Union Budget 2017: Relief from indirect transfer provisions for foreign investors
The clarification puts to rest worries of FPIs, private equity and venture capital funds emanating from a 21 December circular of the tax department. Livemint
The market I’m most bullish on for the next few years in India…more on this in due course. pic.twitter.com/kBgCvwXrCy
— Raoul Pal (@RaoulGMI) January 31, 2017
#general: Budget 2017: What’s cheaper, what’s costlier
FM Jaitley presented his fourth budget with focus on ten distinct themes. Here are some things that could impact your pockets. Forbes India
#general: Budget 2017: Insurance industry hails decision to hike coverage under PMFBY
Farmers will benefit with the government spending Rs 13,240 crore in fiscal 18 on crop insurance. Business Standard
#general: Narendra Modi’s long game: Why Budget 2017 may be last of its kind
While many would think of it as arm chair philosophising there is a high chance that Narendra Modi might be looking to take a step that may have far reaching implications. Economic Times
#general: The Greatest Robo Advisor Of All Time
What do four of the five firms with the biggest robo-advisors — Financial Engines, Vanguard, Schwab and Betterment — have in common? In the last 18 months, they’ve all started hiring human advisors in a big way. Fa-Mag
#general-from the past: Here’s why you should ignore tax-saving investment option under NPS
#general: Carbon credit-like system can curb cash usage
Educated estimates say, 95% of retail dealings continue to be in cash and only 5% of transactions are conducted digitally through various modes. Livemint
#macronomics: European Lehman Moment Wouldn’t Cause a Lehman Moment, ECB Says
Europe’s biggest banks can be shut down in line with the bloc’s new bank failure rules without losses snowballing and causing wider mayhem, according to a European Central Bank study. Bloomberg
#general: The dump that wasn’t
There seems to be a concerted effort to create a narrative around the phrase ‘capital dumping’. We call BS. Ken
#general: Stop sending Indians on H-1B, start hiring US locals: Narayana Murthy to IT companies
Indian software companies need to stop sending people on H-1B visas and focus on local hiring in the US, Infosys co-founder N R Narayana Murthy said amid rising concerns over Donald Trump administration’s proposals to restrict inflow of foreign workers. Times of India
#general: Meet The Startups Helping Broke-Ass Millennials Invest Their Couch Pennies
Companies like Stash and WiseBanyan are growing fast. Will their success be their own undoing? Fast Company
#general: Alibaba Said to Lead $200m Funding for Paytm’s E-Commerce Unit
China’s Alibaba Group Holding Ltd. will lead a $200 million round of investment in newly established Indian online retailer Paytm E-commerce Pvt, a person familiar with the matter said. Bloomberg
#general: Move Over PIIGS. It’s Time for ASPIRE
Spain and Ireland, two of Europe’s faster-growing economies with lower political risk and debt ratings clustered around A, seem to be carving out a niche for themselves in Europe’s peripheral bond market. Bloomberg
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