This is of course the old classic question – “When there is a festive sale and you can get 3 shirts for the price of 2, what do people do?” People rush to the shops. However when the 21000 index is available for 12000 what do people do? They sell.
Well if you have a long term view in life – equities are for the long term – and I mean 10 years plus, you should be considering equities. The overall demand for infrastructure is amazingly large – US and Europe has a lot of replacement work to be done. Asia needs to build. Africa needs to build.
So if there are some large infrastructure companies they are going to benefit. Infrastructure means roads, bridges, telecommunication – US is really not as good as some countries in EU and even some parts of Asia.
So when the going gets tough and the rich n famous are out there shopping, why do you want to be left out? Is Warren Buffet shopping? You bet he is. Should you be shopping. I bet you should be.
I know builders who are struggling to raise Inter corporate deposits – even giving their equity holding as a security. One builder who used to raise ‘000s of US $ now cannot raise 1M dollar in the ICD market in India with all kinds of securities!
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