It is amazing how everybody knows what Namo should do to revive the economy. Just that Namo does not know that.

Now when the economy grows at 10% p.a. it is easier to pull more people out of poverty. So it is obvious that many people (assuming including Namo) would like India to grow at the highest rate.

Namo becomes the PM. He has to tackle many problems. Like Kashmir, North East Citizenship bill, Maoists, Marxists, the troubles created the left overs of the almost dead Congress,……..the list is endless.

Of course he has to decide on his priorities. He appoints so called competent people to run each ministry and he has to then hope that they do a good job. Nirmala S has of course made the situation worse. Imagine when the industry is going through a tough time you screw them further. You levy a surcharge on fuel – what was the need to do this NOW? Tough to understand? No. A baboo(n) can get anything done by a Minister who does not think through a suggestion. Ditto for Long Term cap gain. One has to see how much money they collect from this provision. Well, all her proposals put together has cost us about 15L crores at least in market capitalization. So so stupid considering that the government has to raise a lot of money for Air India, LiC, rescuing ILFS,…etc. Not that the other ministers have done something great. If the big man wants to distribute the cake to more people he has to first make the cake. If the cake vanishes, what will he distribute?

Are there are some low hanging fruits which do not look sexy? Of course. Imagine if you can stop the wastage in FCI godowns! (Piloo Mody called it Food Corruption of India). One of the important things that the guys receiving the grains would do is to add water to the sack – and dramatically increase the weight. Wow! the grains would rot of course. It is of course easy to destroy wealth – and blame the world for it…but baboo(n)s have done it very well.

There are some more low hanging fruits – increasing the profitability of the train travel, keeping the psuĀ  pricing honest, etcc…

long list of course…I rest my case..

IF you are an investor who is less than 80 years of age, and are still in investing mode, REJOICE. FOR whatever reason that Namo is not doing anything, or FII are selling, it is a great opportunity to buy. Yes, I have been buying. I have invested in value and deep value stocks. I have invested lumpsum in US Opportunities fund. I still have money in liquid funds and cash, but I am deploying it slowly. I bought Maruti at 5600, and will add more at 4900. It suits me.

So if you have cash, it makes sense to deploy. I have invested in pharma and auto. Not because it is going to go up, but because it has perhaps finished falling. Yes I will enter the market in 15% at a time investments. I do trade too – sugar has been an awesome share to trade. I have traded NBFC – Cholamandalam preferred to Bajaj Auto finance, just for historical reasons.

See what is good for you, then, JUST DO IT !!

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. Subra Sir, Does Govt policy has anything to do with the recent fall? Weren’t the valuations so unsustainable ? (with P/E close to 30 when 16 is the norm)

Leave a Reply