1. Capital Market and commodity market are the two sides of the same coin.

2. Sensex (white) and Crude (red)

3. Crude nearing $100 gave good indication to book profit in Capital market - sensex at 20000

4. Crude at $145 lead to high inflation and is the major reason for pulling the Sensex below 14000

5. Gold (white) and Crude (red) going through a bull phase.

6. Why we should do commodity in every branch ?

7. Dow Jones Vs Gold Ratio  1) You will notice when the black line is heading up the Dow Jones is generally outperforming the price of gold. We shaded the general trend of the Dow Jones bull market in red. From about 1980 to 2000 the Dow Jones was very clearly in a bull market and outperforming the price of gold. During this time it would be logical to heavily weigh ones investments in the Dow Jones index.  2) You will notice that in 2000 the price of gold started to outperform the Dow Jones. In 2000 the Dow Jones gold ratio peaked at about 42 and then started to head lower. This means that in about 2000 it took 42 ounces of gold to buy one share of the Dow Jones index. But in 2007 it only takes about 19 ounces of gold to buy one share of the Dow Jones index. In other words, since 2000 the price of gold has been outperforming the Dow Jones Index. During this time period it would have made sense to invest in gold. We shaded this area in green.  3) In a bull market we regularly experience quick price advances followed by a sharp pullback. This is normal market behavior. This is a lot of short term noise that intimidates, frustrates and costs many investors a lot of money. Notice the long term dotted trend line we drew on the graph above. This trend line extends back from about 1980 to about 1995, where the Dow Jones really took off. This line is significant as it illustrates a major support line for the Dow/Gold Ratio. Note how in May of 2006 the ratio bounced on the exact same support line that had been started 27 years earlier.

8. A branch should do both commodity and capital market to meet the cyclical fall in revenue in one segment. Looking at the international experience over the past 40 years we can see one market is performing when the other is underperforming.

9. How can we use the commodity market to meet the brokerage target of a branch?  How one Branch can achieve target Branch APerformance BrokerageActualTarget % Achieved Equity48077091200052.72 Commodity486161153000317.75 Total 966931106500090.79

10. Is it difficult to promote global commodities ?  Yes. It is difficult to manage due to the high risk associated with the fluctuating derivative products. Global economic events have very close relationship with these products.  Can we ignore this global events like; -Inflation -Interest rates -Economic data “NO” “NO” We have to learn to manage risks instead of avoiding it.

11. Global Economic data available in your desk top-fxstreet.com- Give you the details of economic data released globally which has direct relationship to financial markets.

12. Go to fxstreet.com,fundamentals, and click on each data- for example on continuing jobless claims-we get the brief description of the data.  Continuing Jobless Claims (Jun 28)  Continuing Jobless Claims (Jun 28)  Actual: release at 12:30 GMTCons.: n/aPrevious: 3116K (to get IST add 5.30 to GMT=18 hrs/6 PM)  The Counting Jobless Claims released by the US Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labor market. A rise in this indicator has negative implications for consumer spending which discourage economic growth. Therefore, a high reading is seen as negative, or bearish for the USD, while a low reading is seen as positive, or bullish. US Department of LaborUS Department of Labor

13. GEPL PRODUCTS  Capital Market  Distribution  Commodity

14. Derivatives becoming a major segment.  In the coming months GEPL will have Derivatives business as a core income generating area: -Capital market Futures and options -Commodity market Futures and -Currency Futures. It clearly means that we have to learn to manage risk instead of avoiding it. In case we fail to provide all these products to clients they may move to competitors offering this facility.

15. Distribution and Commodity  Mirae Asset management has launched a Global Commodity Fund.  Why they are launching a commodity fund ? fund ?

16. Commodities Follow a long cycle  In last 130 years there have been 3 long commodity bull cycles and all they had a life of over 17-18 years: -1907-1923 (Great depression in 1930) -1933-1953-1968-1982 -1999-2018 ??? We are in the middle of this cycle. We are in the middle of this cycle.

17. How to start ?  You have to learn only 4 products: Gold, Crude oil, Copper and Silver. These products are the products which we use in daily life. So it is easy to learn if you spend few hours to understand it.

18. GEPL’s branch getting 8 additional hours to earn income (60% more). Capital and commodity market 10 AM-3.30 PM and commodity 3.30 PM to 11.30 PM

19. Can we do investment in gold through commodity futures ?  Yes.We can buy gold and hold it in DP.  We have 3 different contracts in Gold -Gold Guinea-8 grams gold -Gold Mini-100 grams gold -Gold kilo-1000 grams gold. We can take delivery in all the three contracts and keep in Dp as a long term investment.