#Indian Economy
As I was saying Demonetization is a game changer for India, but most importantly it is game changer for financial services in India. Just think where the money will flow from banking accounts in next few months: is it gold, is it real estate, is it FD's i don't think any of 3 options does make any sense to investors after taking into consideration of inflation, risk & taxes. So money will flow into financial sector like equities, mutual funds, alternative investments or back to business. Either case there will huge inflows in Financial markets and as there is famous line from economist John Maynard Keynes" The market can stay irrational longer than you can stay solvent " . Can you expect to make returns when market is rational? No way because everything will be discounted by then as stock market is leading indicator. Earning will keep catching up & this is called value investing, Tops & bottoms are made for fools, Don't need to time the markets. Era of Compounding for India has truly begun & be disciplined,consistent & show commitment towards financial markets to reap the benefits.
Weekend Blog by
Rasmeet (Trader, Investor, IFA. CFGP)
www.greenhedgecapital.com
As I was saying Demonetization is a game changer for India, but most importantly it is game changer for financial services in India. Just think where the money will flow from banking accounts in next few months: is it gold, is it real estate, is it FD's i don't think any of 3 options does make any sense to investors after taking into consideration of inflation, risk & taxes. So money will flow into financial sector like equities, mutual funds, alternative investments or back to business. Either case there will huge inflows in Financial markets and as there is famous line from economist John Maynard Keynes" The market can stay irrational longer than you can stay solvent " . Can you expect to make returns when market is rational? No way because everything will be discounted by then as stock market is leading indicator. Earning will keep catching up & this is called value investing, Tops & bottoms are made for fools, Don't need to time the markets. Era of Compounding for India has truly begun & be disciplined,consistent & show commitment towards financial markets to reap the benefits.
Weekend Blog by
Rasmeet (Trader, Investor, IFA. CFGP)
www.greenhedgecapital.com
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