Markets in 2013

Reading and listening to all the fund managers’ over various channels gives me a feeling that they are trying to create euphoria about the markets breaking out on the upside, during the Fiscal year 2013-2014.

I heard one of them even stating that the index will rise up at-least 20% if the reforms in governance (Lokpal) / investment (NIB) / fiscal (GST & DTC) are seen through. Well aren’t we waiting for some of them since 2007?

Everyone is expecting the interest rates to come down
… aren’t we expecting the same since last one and a half year. Interest rates won’t come down until the inflation comes down, that’s what RBI states. And for inflation to come down, there other factors which need be tackled apart from interest rates. 

The fund managers’ job is to be optimistic, so that they can give some hope to customers thereby generating business for themselves.

All investors should tread cautiously. The capital required in short term should always be parked in term deposits, short term funds and/or liquid funds. Equity (as investment) is always a long term game. Invest only if one understands it completely. No one should get compelled to invest in equity just because a friend / neighbor is investing in the markets.

Think! It’s your money which is at stake. How much risk you can take with your money should be entirely your call and no-one else’s. Investing in equity does come with a risk which one needs to understand before investing in. Remember there’s no quick money to be made anywhere!