8 weekend LIFE

SUNDAY

THE FREE PRESSJOURNAL

DECEMBER 6, 2015

only as individual linkages run their course.

The withering of western multinationals can
be considerably painful given their size. Just
by way of an illustration of their footprint in
global economy :Walmarts profits are comparable to Botswanas GDP, and its workforce is
bigger than the population of Latvia or Slovenia. Exxon Mobils profits are the same as
Bolivias GDP. At nearly $750 billion in early
2015, Apples market capitalization was
almost as large as the whole of Russias stock
market; and so on.
Why the shift ? First let us see why the profits
rose; for that will give us a clue to why they are

Earnings

is the rate at which our earnings

from an equity share are expected
to grow in future on an annual
basis. When we say earnings from an equity
share we mean the profits of that company. In
other words, g is the rate at which the companys earnings are expected to grow in future
on an annual basis. But what does that have
got to do with stock valuation ?
Everything; for the current value of an equity share is nothing but the sum of its future
earnings, adjusted for the fact that you are
going to get these earnings over time, not
immediately; so the earnings are duly discounted/reduced. Note that I am not talking
of the market price. That is a different thing
altogether. The simple thumb rule then is : if
the current value is more than the price, then
buy the equity share; and vice versa.
As we said above, g is the rate at which the
companys earnings are expected to grow in
future; expected is the key word here. We do
all sorts of fact finding to base our expectations on. But expectation is expectation. We
are talking about something in future. And
the only clue to the future is the past if
something has happened in a certain way in
the past, we assume that it will happen more
or less that way in future. Of course, we are
not so nave. So we do all sorts of corrections
of our projections, based on the present. But
the corrections again are based on our past
experience; if an event x has affected future in
a certain way, we assume that it will affect in
future too the same way. So, at the end of the
day, in spite of all our care to not let our past
guide our future, we end up just letting that
happen. The reason is simple :there is no
other practical way in which we can predict
future. And it works, most of the time. Except
when there is a paradigm change what I call
a tectonic shift.
That is exactly what I want to discuss today.
According to observers at the McKinsey Global Institute, our calculations of g may go off
the mark in the coming decade or probably
decades (yes, g is applied to earnings stream
over a long period of time) as between now
and 2025, the corporate profit pool could
decrease from 10 % of global GDP to about
7.9 % - practically reverting to its level before
the boom began about three decades back.
This is not expected to happen uniformly
across the globe, though. Obviously it will be
truer of those economies that participated in
the boom to a greater extent; the downturn
will impact less those that had a smaller share
in the cake. From 1980 to 2013 global corporate after-tax operating profits grew 30%
faster than global GDP; today they stand at
about 9.8% of global GDP, up from 7.6% in
1980. Corporate net income grew more than
50% faster than global GDP, from 4.4% of
global GDP in 1980 to 7.6% in 2013. North

G IS RATE AT WHICH OUR EARNINGS

FROM AN EQUITY SHARE ARE EXPECTED
TO GROW IN FUTURE ON AN ANNUAL
BASIS. WHEN WE SAY EARNINGS FROM
AN EQUITY SHARE WE MEAN THE PROFITS OF THAT COMPANY.

THE

OF STOCK
VALUATION

TENSING RODRIGUES analyses the rate of return for your stocks and looks into the
crystal ball for some predictions.
American and Western European companies
captured more than half of the global profits.
Although the about turn has come partly as
a result of the rise of the emerging markets, it
does not mean that the waning of the developed economies will not have an impact on
the former. It is not likely to be a simple redistribution of the profit share the share of
the developed economies decreasing and the

share of the emerging economies increasing.

That will definitely happen. But the entire
loss of the former may not be the gain of the
latter. The slowing down of the American and
Western European economies is likely to
place constraints on the growth of the emerging economies, on account of the market connectivity. Here again, it is not just the direct
market linkages that matter but also the indi-

Reasons for Pitta aggravation

The key to balancing Pitta is 'Moderation,' so the very
first thing is to stay away from the causes for
aggravation of Pitta.

y nature, Pitta is inclined to

Moderation and consequently
excessive stress, overwork or
sheer thoughtlessness are the reasons
for imbalance. Pitta also aggravates
naturally during young age. The following are the major reasons of imbalance:

1. Dietetics: Consumption of large

quantities of pungent, bitter, spicy
sour, hot, oily substances, fried foods
and large amount of sour or fermented
food such as cheese, vinegar, sour
cream, alcoholic beverages and fermented drinks. In addition, consuming
dry vegetables and salty foods (alkaline
substances); irregular food habits (not
eating at a fixed time, not eating when
hungry, eating without hunger) and
indigestion; certain foods like sesame
oil, mustard, horse gram, whey, certain
green vegetables, citrus and acidic
fruits, yogurt, buttermilk, cream of
boiled milk, vinegar, intoxicating
drinks, Goha and Katvara fish and flesh
of sheep and goat especially aggravate
Pitta.
2. Emotional disturbances and stress:
Anger, fear and depression, stress, constant pressure, heat and fatigue also

affect Pitta dosa.

3. Habits: Excessive sexual intercourse
and too much exposure to heat and
sun.
4. Season: It is also aggravated naturally in autumn, when the weather is in
transition phase.

Symptoms of aggravated
Pitta
For the identification of Pitta imbalance, the following symptoms are to
be looked upon:
1. Physical indications: Excessive
Pitta in the body leads to lack of
strength, excessive sweating, hunger
and thirst, increased body tempera-

1. Virecana or therapeutic purgation

is the best way to reduce excess Pitta.
Pitta initially accumulates in the
stomach and duodenum (small intestine) and purgatives reach these sites
and eliminate the accumulated Pitta.

S.No. Types

Locations

Functions

Ailments due to vitiation

1.

Lower part of the

stomach and
central part of
the small intestine

Digestion, separation of
nutrients and wastes after
digestion, nourishing other
Pittas from its own location
and regulates the heat of
digestion, generates hunger
and thirst.

Indigestion and irregular

digestion.

Rahjaka Red blood cells,

liver, spleen and
stomach

Blood formation from

digested food energy.
Converting rasa into rakta
(blood) and imparting color.

Anemia, jaundice, blood

disorders, skin inflammation.

Sadhaka Heart

Removes dark thoughts and

desires, increases intelligence, memory, wisdom
and self-esteem.

Psychological disturbances,
fear, anger and greed; heart
diseases.

2.

3.

4.

Alocaka

Eyes

Lends vision. It functions in

the retina to make possible
the perception ofrupa (form)
and color of an object.

Impaired vision and other

ophthalmic ailments.

5.

Bhrajaka Skin

Maintains a glowing complexion, lending color,

brightness and luster to the
skin; absorbing oily substances to nourish various
body parts; maintains body
temperature.

Leucoderma and other skin

diseases.

verything in the human body

has a purpose. Unhappiness sadness, fear and anger - are
the unpleasant emotions present in
our mind. So how can they be useless? But then what is the use of
these unpleasant emotions?
When problems come, we become
unhappy (sad, fearful or angry).
That unhappiness motivates us to
solve the problem that has caused
it. For example, you find some
untidy mess in your bedroom. You
become unhappy. That will motivate you to go and tidy up the
mess. But suppose you were not
bothered about it and did not
become unhappy, you will probably
ignore it and not put in all the
efforts to tidy it up. Thus the
unhappiness has a use: motivating
us to solve the problem that has
caused the unhappiness. So, some
unhappiness can be considered as
essential!
We can think of the unhappy
emotions sadness, fear, anger - as

becomes so unbearable that the

person contemplates ending the
life to escape from the intense
unpleasant brooding going on in
the mind. People who contemplate
suicide may blame various problems and people for the suicide.
But the final cause is the intense
miserable feeling in the head. If,
somehow, they are able to overcome that intense unhappy emotion, they can go back to living and
manage the problem in their lives.
Sometime or the other, everyone
comes into the grip of sadness, fear
or anger that disables the ability to
think and function for some time.
People get into an unpleasant
mood that persists for some time.
They get into the Oh-my-godwhat-a-big-problem attitude!
Suppose, a person becomes sick.
So he become unhappy. He starts
thinking about all the problems
associated with the situation: Oh,
no! This severe back pain had to
happen now when I have so

goes through his mind again and

again! Thus, when faced with the
problem, he gets into an unpleasant mood and keeps on brooding
about and counting all the problems.
While so much thinking is going
on, he forgets to call up and visit
the doctor!
This is the classic Oh-my-godwhat-a-big-problem attitude! The
person emotionally keeps on thinking again and again, OMG, I have
such a big problem! OMG, I have
such a big problem! But, he forgets
to take the steps to solve the problem! So he suffers the unpleasantness of the negative emotions for a
longer time and is unable to manage the problem well.
The opposite of this pattern of
thinking is the What-can-I-doabout-it? attitude. In this, the person gets into the same problem:
severe back pain. Naturally, he, too,
becomes unhappy. But he manages
to contain the unhappiness. The

Remedies for balancing Pitta

The key to balancing Pitta is 'Moderation,' so the very first thing is to stay
away from the causes for aggravation
of Pitta. The following methods help in
balancing Pitta:

Types of Pitta - Locations and Functions

Pacaka

ture and burning sensation; skin

inflammation, boils, rashes, acne, hot
flashes, ulcers and heart burn; darkening of the complexion; unpleasant
body odor, bad breath; oiliness/stickiness; sore throat (pharyngitis), dizziness and syncope; sunstroke, sunburn; yellowing of skin, fecal matter,
urine, nails and eyes are special
symptoms of aggravated Pitta.
2. Mental indications: Anger, hostility, impatience, resentment, irritability
and self-criticism are the signs of Pitta
imbalance.
3. Behavioral indications: Intolerance of delay, outburst of temper,
criticism of others, argumentative
nature, fatigue, lack of sleep, craving
for cold foods and drinks, bitter and
sour taste in the mouth, and intolerance to heat are results of elevated
Pitta levels.
These are the most common signs
of Pitta imbalance.

rect linkages : like, say, impact of profitability

in US on the economic activity in Brazil; and
the impact of declining incomes in Brazil on
Indian companies. We have already seen this
play of the secondary impact in case of the
slowing down of China. Therefore the effect of
this phenomenon on the companies in countries like India cannot be a foregone conclusion either way. A clearer picture can emerge

likely to decline going ahead from here. One,

the 80s and the 90s saw a global movement
towards deregulation; starting from the western
economies it spread to the emerging
economies. Vast swaths of industry, from automobiles, basic materials and telecom to transportation and utilities - all capital intensive but
profit rich, were thrown open to the private
sector. Two, around the same time a huge wave
of urbanization and industrialization in emerging markets led to the growth of the global consumer class and created new markets for the
Western. Three, falling labor costs, higher productivity of both capital and labor and falling
technology prices created unprecedented
opportunities for reducing costs.
Now the markets have peaked out and the
costs have bottomed out. Both the developed
and emerging markets have run their course;
further growth can come only slowly. The
populations are aging and the higher incomes
of the last three decades have jacked up the
wages. To top it all, the big players are now
emerging from outside the US and Europe.
For example, the worlds three largest makers
of domestic appliances are Chinese:Gree
Electric Appliances, Midea Group, and Qingdao Haier. So are the three largest banks:
Industrial and Commercial Bank of China,
China Construction Bank, and Agricultural
Bank of China. The Indian telecommunications firm BhartiAirtel has about 310 million
subscribers worldwidemore than the populations of France, Germany, the United Kingdom, and Spain combined.
So keep a close watch on the g; its future
movement is still a guess.

2. Meditation is very useful to

regain inner calm and equilibrium,
and coolness in any form helps to
counteract the imbalanced Pitta.
3. Regular intake of ghee (clarified
butter), which has /^'/to-opposing
qualities like sweetness, coldness and
other moderate features is also very
useful to keep Pitta in state of balance.
Other such oily and smooth substances
are also helpful. In fact chronic Pitta
diseases can be treated in different
ways with different types of medicated
ghees.
4. Aloe vera juice, sprouted grains
and porridge in the diet also pacify
Pitta provocation.
5. Avoid strenous physical exertion
or overheating in sunlight outside, as
Pitta types are heat-sensitive. In addition, enjoy nature's beauty - look at
the sunset, watch the full moon, walk
beside lakes and running water, and
walk in the cool breeze.
(Excerpted from the book A Practical
Approach To The Science Of Ayurveda:
A Comprehensive Guide
For Healthy Living authored by Acharya
Balkrishna)

w w w. f r e e p r e s s j o u r n a l . i n

Whats the

USE

of unhappiness?
watch dogs. Whenever they
encounter a problem, they start
barking vociferously to attract our
attention towards the problem.
Then the owner comes out, asks
the dogs to become quiet and tackles the problem that started the
pandemonium. So far so good.
But sometimes, these unpleasant
emotions become too intense, too
prolonged and too dominating.
They themselves become another
problem apart from the original
problem that caused them. They
literally cripple the thinking and
functioning. And, being unpleasant, the sadness, fear and anger
make the life miserable. Sometimes
these can even lead to mental
problems such as depression, anxiety and bitterness / anger. In the
worst cases, the unpleasantness

DR. SHRIRANG BAKHLE

tells why unhappiness is
also important in your life.
much important work to do. That
bag I took was too heavy. I wont be
able to deliver that job on time.
Then my boss will be very angry.
Taking leave will hamper my
chances of promotion. And so on
and on! I wont be able to carry my
young child. Then my wife will be
overburdened. I will have to take so
many medicines. I hate taking
medicines. I hope I dont have to
get admitted. Then he thinks, Oh,
no! This back pain had to happen
now
And then the whole
unpleasant unhappy thinking cycle

barking unpleasant emotions do

their job of alerting the master.
Then the master quietens them,
becomes calm and takes charge of
the situation. Coolly, he assesses
the situation and thinks: What can
I do about it? Can I solve the problem? Can I, at least, reduce the
severity of the problem? Can I take
steps to prevent this problem form
troubling me in future? If I cannot
solve the problem, can I adapt and
change myself, so that the problem
doesnt trouble me emotionally?
His whole focus is on the various
steps that need to be taken. And he
does it fairly calmly. So he is more
efficient in minimizing the complications of the problem. This is the
What-can-I-do-about-it? Attitude.
Whenever you feel caught in the
grip of unhappiness, think: Am I
doing the OMG-what-a-big-problem! type of thinking? Then it is
time to get into the What-can-Ido-about-it? attitude!

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