tag:blogger.com,1999:blog-1149152227980228556.post4036946398159488283..comments2008-09-11T12:39:18.217+05:30Sudarshan Sukhanihttp://www.blogger.com/profile/04872255827781271211noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1149152227980228556.post-63201851684552878792008-09-11T08:29:00.000+05:302008-09-11T08:29:00.000+05:30It seems to me that we are witnessing watershed events in the western world. These developments might well be epochal in nature and are bound to have significant impact on the investing scenario worldover, India included.<BR/><BR/>I dont know how or when the pieces will fall in place and the picture emerge. Till then, we wait and watch.<BR/><BR/>The Great India Growth story became much of a hype...if you go to parts of India apart from the major towns and cities, you will witness how millions are unaffected by the boom in the economy. It is easy to make great sound bytes about India's prospects sitting in our air conditioned offices while being totally oblivious to the reality in rural and semi-rural India.<BR/><BR/>In the past, there have been period when stock markets fell and went sideways for extended periods (1986-88, 1995-98, 2000-2002) inspite of good GDP growth. Investors must realise that GDP growth does not always translate into stock market growth.<BR/><BR/>It is clear that foreigners drive the Indian markets. Since 2003 till 2007, FIIs made a total investment of USD 52 billion. Domestic funds invested about USD 9.5 billion. The sensex went up 7 times from 3000 levels. In 2008 till August, FIIs sold USD 7 billion while domestic funds bought USD 1.7 billion giving a net outflow of USD 5.3billion. The sensex was down 34% in this period.<BR/><BR/>FIIs are loath to investing in a depreciating currency. They have problems of their own to think about making huge investments in emerging markets like India.<BR/><BR/>The pain for investors in India could be more than most anticipate. There is a time to be in stocks and there is a time to be out of stocks. The key to success is to realise when.<BR/><BR/>Happy investing!Shashank Jogihttp://www.blogger.com/profile/04550600679244620379noreply@blogger.comtag:blogger.com,1999:blog-1149152227980228556.post-82308263834283451262008-09-10T14:55:00.000+05:302008-09-10T14:55:00.000+05:30Please note that your blog comment box does not work, and this is not something that has happened just once to me. Perhaps a bit of help from Blogger would set it right.<BR/>I posted this comment for your last blog post:<BR/>"I disagree when you say we are following the model of 'extreme capitalism'. We are a socialist mixed-economy in every sense. The control Governments have on our daily activities is incredibly deep and complex. This is incompatible with capitalism. Let us not give a bad name to capitalism that it does not deserve."<BR/>Blog: http://rambodoc.wordpress.comSudarshan Sukhanihttp://www.blogger.com/profile/04872255827781271211noreply@blogger.comtag:blogger.com,1999:blog-1149152227980228556.post-14941051207455344452008-09-10T11:55:00.000+05:302008-09-10T11:55:00.000+05:30Interesting advise on PSUs. IMO, Most of the PSUs have been good at giving dividends for investors, but i'm concerned that the quality of management at the helm of some these PSUs is questionable. Should i not factor that into my risk? Any recommendations on PSU stocks you have? thankssureshhttp://www.blogger.com/profile/16479449499131125575noreply@blogger.com