Where exactly are we headed?
– A government which has no clue what is happening. The Finance Minister talks about a 8% growth. The reality is more like a 6.5% growth (well the government says 7.1 with a downward bias)
-The Rupee headed towards 55 if not worse.
-The RBI wondering what to do. It is clearly not responsible for the European Crisis or the coming Chinese hard landing!
-Portfolio investors (especially US $ investors) have been taken to the cleaners, they want the RBI to intervene!
-The government of course has no clue about what is happening. If Subramanyam Swamy has his way, the Home Minister will be inside Tihar too!
-Suddenly growth has vanished, portfolio investors have vanished…and the deficit is heading towards the US $ 15 billion (fiscal first quarter). Overall it will be about US $ 55 billion.
-The government assumed US $ 30 billion of portfolio investment…we are at a figure of -60 million perhaps.
– If the government cannot (or will not) control the deficit, cannot do any of the reforms…it might as well call for polls!
– Indians are happily exploring the possibilities of investing abroad – remember we all can invest upto US $ 200,000. If 100,000 people do it, the Rupee-Dollar rate will get worse..
-RBI has no clue about what to do next. To me it is looking like Alice in Wonderland or like a general physician who keeps doling out a red medicine,and refuses to recommend you to a specialist.
-Into all this gloom you have to keep buying shares – assuming you or your company have not been downsized 🙂
Remember what Peter Lynch says?
If you spent 10 minutes in a year wondering what the economy will do (instead of what your portfolio will do) you have already wasted 7 minutes…
Post Footer automatically generated by Add Post Footer Plugin for wordpress.