It is a little perplexing that when there was stress in the western markets we were rightly getting the pain here, but when the western markets where there seem to be the epicenter of trouble, doing fine in the short term – while we get pummeled like hell even without reason. So here we have the western markets rebound like 4%-5% over the course of past few weeks we don’t recover half of that. Now, there are host of reason that are being put forth like high fiscal deficit, inflation, policy paralysis (new terms getting invented daily) and what not. Well these problems, according to me are cyclical and not structural; as those problems that plague the west today. Debt/GDP beyond control, sagging demand and joblessness; strong currency and inability to stimulate demand despite everything. Basically, the patient is dead.
Accept and move on.
Here, in the land of opportunity, despite everything, demand as much as an eye can see, young and happy crowd. Innovation – the concept of jugaad all over; yet money flees at the slightest hint of trouble. We are no Afghanistan (excuse me, but nothing against that country). Then why, would you imagine that there are no takers for cheap yet good quality assets?
The answer is us. We don’t invest enough. We keep the money in the saving’s account despite measly returns of 4% and an inflation of 10%. We rush to open accounts for 6% and banks spend money on advertisement since they know that by spending money the RoI is high. They will get cheap money.
We just don’t participant in the securities market. IPO’s flop, PE funds don’t get the required capital when they market their funds. We are so risk averse. Yet there seems to be hope. Only when we work hard enough to convince people; bit by bit and tell them to join the party where the world is going to come. It would be better to be there first and take the choicest of seats.
Enough of dope.
Tomorrow is an off day for the market. So breath easy.
No comments:
Post a Comment