| Topic : Investment Strategies during Economic slowdown |
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last activity : 07 06 2010 20:18:04 +0000
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As I write this most of you are already aware that at the ground level
a) Business confidence is coming back
b) Consumers have started spending
c) Gold has hit life time high
d) Equities have rebounded back and are up more than 100%
But how many of you have benefitted from the pessimism in the past year. Did I just hear.......Saving my job itself was a big plus. Typical retail investor mentality.
I am pretty sure 80% of people are still paranoid about the recovery and are playing safe with respect to your life. But mind you riches are created in the worst of fortunes. ,
Did I again hear Damn with all the green shoots but I do not want to take risk albeit a very calculated one. I thank you, if you belong to this type. The more the merrier because I know greater the fear even at these levels the higher the equity markets are going to climb in the run up to the biggest bull run we are yet to witness.After all only when there is such mentality are we able to create wealth.
Most of you would be waiting for the ever elusive correction so that this time you will not repeat the mistake and buy stocks at cheap levels. Congratulations you have missed out on the bus.
But now for the hard hearted people.What you are seeing right now in the equity markets is the consolidation phase between 15-17000. I do not care what all analyst speak about in the short term. But I am bullish about India's growth and in this cycle of rally which will peak in the next 5-6 years markets will easily cross 40000 levels. Did somebody faint.....The facts are there to prove this.
1) India will touch double digit growth...I am sure everybody would agree
2) Indian companies will be added in a big way in Fortune 500 list
3 Huge focus on Infrastructure will lead to a boomerang effect
4) Rural focus of companies will result in huge volumes
5) A stable government
6) Disinvestment is already kickin in
7) RBI is already diversifying its reserves
8) With developed economies in doldrums huge FII money will splash in
There are lot many more indicators that prompt me to say we are very lucky to be living in an era where we can create maximum wealth but only if we play the right cards at the right time,....Adieu

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