Monday, November 17, 2014

The Rising Sensex

The Sensex is now above 28000. A few months back economic pundits talked about 25000 mark and were looking forward to making money by speculation and intelligent investments. But now the whole share market is surging ahead. What are the reasons for such a rise?
1) The fall in international crude prices. The petrol price in India is more or less deregulated and is only controlled by international crude oil prices. The fall in crude oil prices has made surplus money in market and hence the Sensex is moving ahead.
2) Friendly government and bureaucrats. The government is considered market friendly. Also RBI governor is favored by all businessmen. The new Economic Adviser to GOI has also given more hope to all the junta investing in shares.
3) Lack of Global peer to peer competition. There is a lot of red tapism in India. Free trade and economic liberalization are dreams for all. More so for the rich. Because our range is limited we manage to excel and do well in our field. Bitcoins can change this to a large extent. But no one dares to make bitcoins a reality in India.
4) Foreign Institution Investments. The foreigners are investing more in India. They see India as an opportunity. We have seen the recent trends in FII activity in e-tailing.
These are some of the important points which is causing the Sensex to move up. With confidence. With determination. And with Drive.

Wednesday, October 15, 2014

Unviable Finances - A Solution

During early stages of human evolution, people would exchange grains for logs of wood. Or cloth for tools etc.

Then man made coins and money. With this he was able to get items whenever he wanted and also he could get many things for possessing one thing in excess.

Now things are changing fast. The resources are fast depleting and people no longer seem to be in full control. Result is seemingly unviable finances. What to do in such a circumstance?

As you can see, here there is no one money that is involved, but many.  There may be one or many intermediaries.
This is the solution for India and I do not believe that we are economically unviable.

Wednesday, September 24, 2014

A Few Lessons to Learn

My learning about economy does not end. I keep learning all the while and here I am writing down some of the things I learnt.
1) There are things which come as free when you buy one thing. Eg. Toothbrush free with toothpaste etc. These freebies add interest to the buyers and builds economy by a large margin.
2) It is a good idea to give Rs.20 extra to the car cleaner, say once in three months or so. You can say " Have a tea and cigarette with this money". This will ensure that car is better cleaned and better taken care of.
3) It is a good idea to buy bread, milk etc. (daily essentials) from the same shop every day. This will not only help in building relationship but also enable the shopkeeper to know demand accurately.
4) Indulge in a habit and spend money with full heart. The habit can be gadgets, artwork etc. This will reinstate our faith in ourselves and will force the rich also to do so. The rich will also be tuned to indulge in the habit of giving. This will boost macro economy.
5) Keep clean habits and be predictable. This behaviour of yours will slowly get guided into economy thinking. You will slowly begin to keep spending data, calculate your worth and other diaries. This will help you a lot.
6) Be prepared with exigencies. Remember, being a man you can be called to defend the country and fight wars. If you are prepared then this preparation will help in dealing with difficult economic stages of life too.
7) As far as possible try to build yourself to an image. This image can be your company or a tourist place etc. People are attracted to images and by living upto an image you will be able to sell yourself better. This will give fillip to economy.

Monday, August 4, 2014

Follow Your Own Instincts

The share market is at its enthusiastic best. No time in the history of BSE were the conditions considered so favorable. The government at the center is headed by a person considered very friendly to the business houses. The IT and networking is at peak. The bank balance of the earning class is healthy. Therefore, a middle class man has sufficient funds for investing and he also has the infrastructure to make a healthy profit from investments.
But unfortunately we get completely blinded by the lure of getting quick returns. Only yesterday we read that the CEO of Flipkart is finding it difficult to handle so much of money. He considers that his company is being overvalued. True, Amazon has pumped in funds into Flipkart and that is a positive move. But that hardly makes a reason to ride blindly into the wave.
The government is planning to open up PSUs, insurance, retail, defence and other areas. These are greenfields and an investor should invest in these areas. This will not only give appreciation of your assets but also indirectly support the government.
Most of the above areas are long term investments and will start to bear fruit in about a year or so.
Our PM has appealed to the rich to forego subsidies in gas cylinders. Then today I read the charges against Jignesh Shah. In my opinion Jignesh Shah has ventured into areas which became loss making. There was no cheating.
I hope the young will understand the issues more clearly and make investments suitably.

Friday, January 31, 2014

Sovereign Magnetic Bonds ?

We all know that our economy is suffering. We all know that one man's gain is another man's loss. We also know that one man's gain could be more than the loss of another man. Also we know that one man's loss could be more than one man's gain. After all this is what is economy.
Can the loss or gain be measured to have precise economy? It can be. This is exactly where magnet comes into play. The lie detector technique.
RBI should issue bonds pledged against our iron ore reserves. This bond should have gain loss computer software attached with it. 
Now, the question is who will control it? Water Pond villages should control it. Larger the pond, larger shall be its control. Rivers should not be considered as it is likely to be more controversial.
See anything is possible. But we need will. We need action. Simply writing stories will never ever work. An empty mind is a devil's workshop. Stories are devilish . . .