As the Indian fiasco over demonetizing bills worth all of 15 cents each plays out, I am holding back on new stock positions in Modi-Land, because I think he is proving as unpredictable and as inexperienced in monetary policy as other global current and future leaders like Xin Jiping, The Donald, Theresa May, and Francois Holland—to say nothing about the only other money-withdrawing currency, in Nicolas Maduro's Venezuela. It is astonishing that after sacking the well-regarded central bank head, the Indian PM went off on this novel experiment which risks hurting the country's growth and investment at least for some months in the short-term, and perhaps longer. I am a fan of Indian democracy and of its economic potential. But sometimes the two seem to conflict, like now. While I filed on the purchasing managers' indexes yesterday it was too soon to include the excellent US showing which boosted Wall Street and the dollar later. My copy is resisting formatting and italics and bolds, for which apologies.
More today for paid subscribers from India, of course, Ireland, Britain, Israel, Denmark, Finland, France, Brazil, Canada, Colombia, Cyprus, Germany, the Dutch Antilles, Hong Kong, Spain, South Africa, and Ireland. We also have a new stock purchase idea to start the year right.