All other boys failed; Is your son a genius ?

Bloomberg analysis shows the quarter ended September ,2015 has been the worst performer for those who had bet on the equities with China bleeding the most and India the least. Our ministers and those rated investment gurus would tell you how , India stood out of the pack with only 5.85 per cent slippage while investors in China lost as much as 28.63 per cent in the quarter.

It is like : When a father asked his son how his result was, he replied- lawyer’s son , engineer’s son and actor’s son have all flunked. But when dad insisted , what about his own  result, the son retored: when everybody has failed, how do you expect me to clear the exam. As if your son is super genius!

So, please get the context  right when you are told next time: India is a bright spot and so on.  Okay, how are we going to perform in the quarter that began today?  There would be occasional momentum rallies. Should you try and buy stocks, be sure that , as I keep insisting, that a stop loss is fixed.  Do not ever play into the stock market without being prepared that some losses have to be booked. (This is called stop loss)  But if you are careful, you would not lose.

Avoid these commodity stocks in steel, copper, entire metal field- it looks like a minefield today. Fixed deposits, despite RBI slashing the interest rates, would still be the best bet .  Also wait for the Indian Government’s  schemes on gold bonds and gold accounts….Gold , does not let you down…It is a real asset , listen to grand parents for some solid advice.

At the policy level, the Narendra Modi Government would keep trying hard to woo investors, but then given the fluid global economy, which parts of the world have investors ready to bet, especially on emerging markets? They are cagey…..not sure……Play safe….I may sound old fashioned, but it is better to err on the side of caution, rather than be fool hardy…

A few words about Ease of Doing business. Despite much talk, walk into a bank branch next door and tell the manager you would like to open a Current Account. He will ask you this registration, that registration, this personal identification that one…….., you will get a fair idea how easy it is to business.

Am I sounding too cynical? Well, promise the next piece would be the reverse.