Can somebody explain Turkey's currency crisis and how does it affect Indian economy in simple terms?
Images: Google | President of Turkey - Recep Tayyip ErdoganThe currency crisis is the direct result of showdown between the US and Turkey. Trump announced the doubling of steel and aluminium tariffs on Turkey in an attempt to pressurize Erdogan to release Christian pastor Andrew Brunson, who is held in Turkey for terrorism charges. Erdogan retaliated by doubling tariffs on some US imports. This double whammy has led to Lira (the currency of Turkey) losing its value by almost 35%.Of course, Donald Trump’s antics resulted into a sharp meltdown of Lira, but the current crisis is Turkey’s own making. Trump’s announcement simply triggered the impending economic disaster. Ordinarily, a normal and healthy economy can absorb the shock by adjusting interest rates. But, Turkey’s economy is far from being healthy or normal. It is overheated with artificially low interest rates, high inflation and low foreign reserves. Then there is widespread corruption and nepotism. Turkey is in a bad shape.How does it affect Indian economy?Turkey’s crisis led to strengthening of the dollar and automatic depreciation of other currencies. This further led to strong demand for dollar and thus capital outflow towards stronger currency. In India, on 14th August 2018, FIIs sold Rs. 378.84 crores[1] that further exacerbated the situation. These factors pushed the Rupee down from 68 to 70 per dollar in a short time.In the past year, Indian Rupee has lost 10.5 % of it's value and crude oil price have risen from $51 per barrel to $80 respectively.[2] This has led to increased India's oil import bill. Since 80% of India’s oil comes from imports, it has widened India's trade deficit.This might lead to high inflation or economic slowdown or both if the Government and RBI do not act in time.Footnotes[1] Rupee hits new all-time low of 70.32, plunges 43 paise vs USD - Times of India[2] Crude Oil (petroleum) - Monthly Price - Commodity Prices - Price Charts, Data, and News - IndexMundi
What is the next big thing in artificial intelligence?
Artificial Intelligence (AI) may seem like a sci-fi but AI machines can do some pretty amazing and impossible stuff which humans will never be able to.The rising adoption of artificial intelligence in diverse industries and the growing demand to create apps are projected to enhance the growth of the global artificial intelligence apps market in the next few years. The market is expected to register a strong growth rate throughout the forecast period. The research study offers a detailed study of the market and highlights the major factors that are likely to support the growth of the overall market in the next few years.For More Future Trends in AI, Download PDF BrochureA tremendous rise in the big data and the rising demand for intelligent virtual assistants are the key factors that are projected to encourage the growth of the global artificial intelligence apps market in the next few years. The growth in the adoption of cloud-based applications and services is another major factor that is likely to enhance market growth in the near future.On the flip side, the lack of skilled personnel of artificial intelligence app experts is estimated to hamper the growth of the global artificial intelligence apps market in the coming few years. Nonetheless, the rising adoption of artificial intelligence apps in order to enhance customer service is projected to support the market growth and offer promising growth opportunities for market players in the near future.
What technologies should one learn to stay ahead in the IT industry from now until 2020?
First of all, five years is a long time in Computer Science. What's hot today, it might well not be in 6 months anymore. New technologies appear and disappear in short periods of time, so it's hard to pinpoint something specific.However, we know that several things are not going anywhere, but will become stronger with the time.The web is here to stay, so learn web-related technologies. Learn how to make web pages. Learn how to make these pages fast. Learn how to create a great experience for your users.Cloud computing is getting stronger by the minute, and everything is moving to the cloud. You know this is a tendency that will get stronger and not weaker, so learn how to develop for the cloud. The language doesn't matter, but the whole paradigm does.Learn about non-relational databases. Internet is massive today, but it will be even bigger in 5 years, so any application will potentially have billion of users. You need to learn how to make scalable applications, starting from the data layer.There's also another bunch of software engineering topics that are useful today, and will be useful for the next 50 years: algorithms, data structures, refactoring techniques, design patterns, testing, etc. These are not going anywhere, and they have nothing to do with a specific technology or programming language.More importantly, learn how to learn faster and better.
How concerned are you about the Wall Street volatility? Are you thinking of getting out of stock investments entirely?
Volatility is always there. Sometimes high, sometimes low. A good trader (a professional one) knows how to take advantage of vol swings. In fact, that is how professionals (traders at investment banks and hedge funds) make their money.Most of the time, retail traders get discouraged when vol swings happen. The reason is they don’t have the necessary knowledge and education on how to take advantage of it.As a rule of thumb, whenever volatility spikes 25% or more, get out of all your positions. If you follow this rule you will minimize your losses. Volatility represents the risk in the market. When vol spikes 25% it means that the world’s portfolio risk has automatically increased by the same amount too.Retail traders have the luxury of NON PARTICIPATION unlike professional traders at investment banks and hedge funds. So, if you have made a profit in the past months, just sit still and go on a vacation or something and keep away from the markets until vol comes down.I have started a YouTube channel teaching retail traders how to trade correctly. I will elaborate more about how to take advantage of vol swings in the future. You should check it out.