2 thoughts on “Guest post at The Smarter Wallet – Cyclically Adjust P/E Ratio”

  1. Nice job Manshu! I like the acronym!

    Any big Indian IPO’s coming out this year? It seems like there’s going to be a HUGE year over year uptick in inflation in 1Q10 calendar year… something like from 2% to 8%. Does that concern you? I suspect the Indian gov’t will raise interest rates, as well as raise taxes to curb their budget deficit as a result no?

    1. Inflation is getting to a worrisome level. Rate hikes are expected in January, and the fact that indirect tax receipts are lower is not a good sign either.
      The government had proposed some great tax changes, which would have simplified the tax structure and lowered the rates somewhat. With this kind of scenario, they will find it really hard to move forward with those reforms.

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