One of the Aerosmith’s greatest hits should be an anthem for an equity investor:
Equity investors should have a goal of dreaming earlier than others. Equity investor wants to buy something with little dream today and then sell that to someone who has a bigger dream latter. Equity market love fest happens not when just good is good but when bad is good also and good is good anyway. Unfortunately this has not been the case for India equity market for some time. In the context of the India equity market, situation has been that bad is bad but good is also bad. So when will situation turn from “bad is bad and good is also bad” to “good is good and bad is also good”.
An Indian equity investor has a long list of dream these days and these dreams are common to most of those investors:
- Stable government post election
- Structural reforms in various sectors of the economy
- Decline in stubborn inflation
- RBI decision to reduce interest rate
- Recovery in GDP growth
- Decline in bank’s NPA
- Growth in corporate profits
- Expansion of P/E multiples
- Dream of India not being downgraded to junk grade
And the list goes on…
For now it seems like buying a lottery and winning a jackpot. But an equity investor should keep on dreaming for these dreams are not impossible…and why not? Dreaming leads to positive view and outlook.
For now, as an equity investor my dream is that India will have a stable government post election and everything will be fine after that as new government will take some revolutionary measures to fuel India’s growth. It might seem bit wimpy at this stage. I am intending to buy a lottery and enjoy that private moment of dreaming about winning it all. Whether you agree with me or not, you have to admit that my dream of stable government and structural reforms thereon would lay the foundation of excellent return in the India equity market in coming time.
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