Where should you invest in 2012
Well this is the question a NRI is asking…sure Indians are also asking, but face it, they have no choice!
Let us look at China. If I had my money there, I would be worried and pulling out. The government has too much money and it does not let the citizens spend – that is the way to keep inflation down. The avg Chinese will end up buying more gold and real estate. Real Estate is cracking and gold may also struggle.
India: It has a government which spends with 4 hands. Clearly RBI has no answer to inflation and the UPA is busy making money. No clue whether it is worth voting NDA back to power – but we may have to do that just to get rid of the Congress. Most of the reforms happened under Narasimha Rao and Vajpayee – our current PM is …well no comments. No control on inflation, no control on deficit (55 billion US $ soon). No reforms, growth in mid single digits, and the Rupee heading to 55 shortly…NO way how an American will be in a hurry to invest. We thought if we got US $ 30 billion once, we will get it every year.
If Subramanyam Swamy can get some order from the Supreme Court – the government will have to go. Kaput.
So India is out.
Brazil, Russia ….hmm no comments..
So there will be ‘flight to safety’ – so the American bluechips will get more money …..all IMHO….
shinu
Subra Sir
You too started writing off the Indian story..:(.
Funny that the year in which the US was downgraded, $ had appreciated the most and its market delivered the best. The world is getting smaller and the most unpredictable. Still i feel for the below in India with a minimum period of
10+ years investment – invest in land
5+ years investment – invest in market
3+ years investment – invest in FD
1+ year investment – invest in Debt..
subra
so Shinu you are a fund manager who can see for 10 years, correct?
shinu
Hahaha.. Sir i expect and pray a minimum change of 2 central govt ministries by that time and hope some men with sensibilities and brains will take us back to the path all of us are dreaming for. That’s it. 🙂 . I am more than happy to get a 5%+ returns above inflation and hope the above will work as i find in its history and is just happy with managing my own funds :).