Global economies are in jitters as stock markets the world over are falling like nine pins. Indian indices have hit a 52-week low and investors would feel more pain in the days to come. Weaknesses in crude prices one thought was a boon in disguise for India to fuel its growth and outperform emerging markets the world over but bad politics did not allow the theme to play out as Indian government increased taxes and levies on fuel to increase their revenues to bridge the gap in their budget deficit estimates. Traders should stay away from the markets as catching a falling knife would mean more bleeding however attractive the stock markets may be at the moment as even experts can’t predict the bottom. Traders should turn investors by increasing their time horizon as serious money is made in stocks if your outlook is long-term. Money is always made in stocks when there is blood on the streets and the coming days would provide a golden opportunity for investors to build a long term portfolio to make big money in stocks if you invest for a 5 to 6 years period.
With budget round the corner, Finance Minister should take some tough calls to bring our economy back on track. Black money should be targeted as we literally have a parallel economy of cash transactions of unaccounted money. Help banks recover bad loans so that there is more liquidity in the system. Ease fuel rates so that inflation comes down. Also, important policies should be pushed through in Parliament so that the confidence of global investors as well as Indian companies return which should help our economy by leaps and bounds!
S.N. Kabra
(The views expressed by the author in the article are his/her own.)
