Friday, September 26, 2008

GLOBAL MARKETS and INDIA

The pain in US continues with the death of marquee investment banks.Who would have thought a few months back Meryll Lynch,Lehman Brothers would no longer be in the World financial landscape.However the world moves on.The players have got fewer and the only question one is forced to ask is whether they will learn from past mistakes.History says they will not.So in future also bubbles will get created whatever be the regulations and will get burst.That is the nature of law.Human Greed will always rear its head every few years. Human fear will also happen after every bubble is burst.

So the situation in India is today of fear.Fear of everything-Failure of companies,growth rates,forex losses etc.These fears has also created a opportunities to the long term investor to start building a portfolio with a three year plus outlook to generate far greater returns than is possible with any other instrument available in the markets.For the risk averse look at blue chips or the large cap variety-Reliance,HDFC,HDFC bank etc. For the higher risk-higher reward investor blue chip mid caps are available on a discount sale in the dalal street.

Conviction in self is the key to creating wealth.


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