When there is blood on the street my mind start searching for positives within negatives. In last 10 days of vicious fall India has shown relative strength compared to other market. Which gives me lot more comfort that people are not willing to leave India. Obviously there is a coupling and we are witnessing similar fall. But degree of fall is muted. Which is clearly dictating that we will do relatively better compared to other markets in fall as well as rise.
Will US downgrade and European crisis bring world to standstill. My mind clearly says no. We all are part of capitalist world economy. If capitalism comes to an end we will have ruins and nothing will work not yours bank deposits also. Most of the time investors are rewarded for lending capital in the toughest of times. These are trying times.
Let’s not forget the Big picture.
1. China & India with other economies will grow at faster rate than western world.
2. There is rise in per capita income and education system in these economies which will improve productivity and standard of living.
3. Capital will flow from western world to emerging market in search of return.
4. INDIA & CHINA will emerge as two largest economies of the world.
One should always invest when there is BLOOD ON THE STREET. Even if it is your own BLOOD.
When you will see yourself 10 years ahead. You will sit back and repent why I missed that opportunity.
And remember don’t expect short term returns by investing in these times.
