Sunday, June 12, 2011

Dont Let the Pessimism Keep you down

So the global situation is bad,Europe is having E.Coli,the USA growth pangs and debt worries.China and India facing inflation,The Middle East-Syria,Yemen at war with itself,Gadaffi is still being bombed and no one knows who is running the oil wells?

Situations like these have given birth to investment "gurus" like Warren Buffett,Soros,Mobius etc,whne the day is at its darkest someone has to take the call on whether we face Armageddon or will will endure.

Indian equities are fairly valued(if you know what fair value is!).I know I would buy real estate,consumer stories as the land required to live and grow food in the emerging markets is at a premium.The real unemployment rate in India is 10% funnily our analysts only see the US figs.Its probably down from around 18-20% in the last decade and the growth in Per Capita income has camoflaged the unemployment effectively.

Infrastructure stories are for those investors who want to invest for minimum 10 years although at the end of the day at least for another quarter take the profits of the table and go for bonds and bank deposits at a risk free return of 8-9%


No comments:

Post a Comment