If this is true, then the only way is up now!
Read this article from a economics professor at Princeton!
I still have not invested anything additionally in Indian stocks.Yogesh of Happionaire blog fame also recommends not to buy any shares now.He insists on real physical gold
Tuesday, July 28, 2009
Monday, July 13, 2009
Some 'Home" truths
http://www.moneycontrol.com/india/news/cnbc-tv18-comments/excess-liquidity-intoxicated-realty-sector-deepak-parekh/405643
Anyone watching realty sector in Bangalore, Chennai and other metro cities of India know this truth.Even DINKS(Double Income No Kids) category would keep shuddering at the cost of home prices even though they were in high paying sectors like IT.The realty builders were so arrogant in Bangalore , that one of my friends told me, when he was planning to buy a flat 3 years ago,the builder raised the rate by 10% on weekends when they heard RBI had dropped its interest rates!
Builders like Mantri,Shobha and Purva built huge flat complexes having nearly 200-800 flats and priced each flat at 80lakhs cost(and that was the minimum price for a single unit).Imagine finding nearly 5000 people shelling out 80 lakhs in Bangalore.Did they conduct a market survey before deciding on such prices? even after shelling out such prices, a buyer needs to pay more like registration charges, water and electricity connection bills,vat,service tax etc
Instaed of decreasing the prices, the builders are now trying to postpone their loans to banks or trying to resolve the issue through QIP etc.It will not make much of a dent unless the consumer starts buying and for that, the builders have to decrease their prices.10-20% does not matter and has no effect.It should be atleast 50% now!
I am surprised that Parekh also makes fun of nano housing!
Anyone watching realty sector in Bangalore, Chennai and other metro cities of India know this truth.Even DINKS(Double Income No Kids) category would keep shuddering at the cost of home prices even though they were in high paying sectors like IT.The realty builders were so arrogant in Bangalore , that one of my friends told me, when he was planning to buy a flat 3 years ago,the builder raised the rate by 10% on weekends when they heard RBI had dropped its interest rates!
Builders like Mantri,Shobha and Purva built huge flat complexes having nearly 200-800 flats and priced each flat at 80lakhs cost(and that was the minimum price for a single unit).Imagine finding nearly 5000 people shelling out 80 lakhs in Bangalore.Did they conduct a market survey before deciding on such prices? even after shelling out such prices, a buyer needs to pay more like registration charges, water and electricity connection bills,vat,service tax etc
Instaed of decreasing the prices, the builders are now trying to postpone their loans to banks or trying to resolve the issue through QIP etc.It will not make much of a dent unless the consumer starts buying and for that, the builders have to decrease their prices.10-20% does not matter and has no effect.It should be atleast 50% now!
I am surprised that Parekh also makes fun of nano housing!
Tuesday, July 7, 2009
A New Era For Stocks
A very nice article in Yahoo
To summarize, be careful on equities in the near term.I think instead of (100-your current age) allocation in equities, it is better to put 85% in safe instruments and take risk with 15%
As I expected, the budget had nothing much to offer. With the growing fiscal deficit, i did not think the tax rates would be brought down much.I also expected the infrastructure spending and disinvestment of public companies to be on the higher side.It was a disappointment.
The Indian markets crashes a lot as they expected a lot in the budget.If the market crashes below 12K etc, i think it is a good time to re-enter in a small way.
To summarize, be careful on equities in the near term.I think instead of (100-your current age) allocation in equities, it is better to put 85% in safe instruments and take risk with 15%
As I expected, the budget had nothing much to offer. With the growing fiscal deficit, i did not think the tax rates would be brought down much.I also expected the infrastructure spending and disinvestment of public companies to be on the higher side.It was a disappointment.
The Indian markets crashes a lot as they expected a lot in the budget.If the market crashes below 12K etc, i think it is a good time to re-enter in a small way.
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