Smart Investing: Adjusting Strategies To Market Challenges
By and large, investing in stock is exciting and challenging. Stoics tell us a good story, one can’t direct the wind, but can adjust sails’, and if you strive hard to foster a well-informed risk-taking culture, one can unlock the untapped potential of the market, and achieve sustainable growth in his or her investment portfolio.
Investors should not merely define themselves by external events, but must learn how to rightly respond to them. Responding to anything and everything is more or less like venturing into open waters without necessary precautions.
A sudden and thoughtless investment decision will lead one to a complete collapse. Let’s learn how to adjust your sails. Many influencers downplay market obstacles, and wait for bulls to moo and bears to growl.
Many factors attract uninformed investors to the market, and we often see the 'inviter' booking profits, and the 'invitee' burning fingers, and then blame markets and macro fundamentals. In transparent and developed stock markets, a desirable degree of healthy dissemination of information exists, and in unhealthy markets, often information dissemination is staggeringly poor.
Poor investor education, and a series of economic and social challenges create unpleasant surprise-after-surprise in India. These factors have been negatively affecting Indian markets for decades, eroding investor confidence. Investors lose billions and billions, wealth creation becomes weak, and the speed of inclusive development and economic activity significantly reduces. Millions of households’ savings sit in low-yield bank deposits and other poor investment schemes.
The government’s initiatives should include attracting household savings to the stock market, but unless we create a better level playing field, attracting household savings to capital markets will be a disaster.
The appreciation of land and property prices has not been in line with the inflation dilemmas. Poor standard of living and social inequality continue to rise steeply.
There are millions of Indian households sitting on good wealth, made up of movable and immovable assets, such as land and properties, gold, pensions, bank deposits, etc. Yet, to leverage the same, the government should launch a new investment scheme, where sustainable returns can be assured to generations.
The newly approved Income Tax reforms can’t attract savings to stock markets as the salaried middle-class finds it extremely difficult to make ends meet due to the rising cost of living and debt burden. Citizens dream a day where the government chalks out a long-term project for all.
The assets of millions of households can be invested into a common stock market investment fund, owned by the government, and can ensure regular and sustainable returns to generations.
Despite growing population and mind-boggling corporate wealth, we couldn’t find a sustainable path to enhance the per capita income from the current $2,500-2,800 (comparatively poor) to a reasonable level. Let’s dream a day of achieving a more audacious mindset: “Yes, we are Indians’, and together we can move mountains.”
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