With globalization, we are moving more & more towards 1 World, 1 Market.
Yet might seem intimidating at first sight, but it does mean more prospects. Proper use of IT can land you a wealth of information, but the crux of the matter lies in PROPER ANALYSIS.
Let me shower you with some data & analysis.
You are more or less satisfied with the US market. But should you stick with it for 5 years with 90% of your portfolio invested in it? IMHO, it’s not a wise decision. It’s the market most prone to terrorist attacks, in the scale of 9/11 or even greater. Such an event would severely erode your stock values. Besides, you can factor in other stuff like major changes in foreign policy after the Dems come in 2008 + the fiscal deficit + the rise of the Euro + Chinese “flooding” + overdependancy on foreign oil + a zillion other threats, which I’ll itemize in my later blogs.
The other day, somebody asked me, “ Tamal, I’m going to buy some index mutual funds in India. You think it’s O.K. right now?” Well, this is just the wrong moment. The Indian markets going on a bit of hype right now, so I told him to wait for the next big correction. And I mean BIG. Like the SENSEX should fall to at least 11,000. It could even go below 10,000 once again. That’s stupid, you think ?
Think again. Nowhere does the maxim of Warren Buffet’s market guru Benjamin Franklin : “Mr. Market is a neurotic person” hold so true as in India.
The Chinese market seems better than the Indian market. So, as an overseas investor, should you invest in the Chinese market on a long term? Nope. Because besides being a controlled economy, remember the market’s all about PERCENTAGE OF INCREASE. China will be leveling off.
The other day somebody told me “Do you think Japan is a spent force, Mr. Mukherji?” This NRI was thinking of buying some Japanese penny stocks especially in the finance sector. He had no idea of their record forex reserves + gold reserves + their strategic real estate holdings.
Buy euro or bullion ? Which is better in a stable economy, and which is better if there is a conflict with Iran?
Buy real estate in Calcutta or the NCR?
Should you set up a textile manufacturing unit in China or in India ?
If you’re thinking of “outsourcing”, is India really the best choice or are there some other countries you still haven’t thought of?
I’ll be analyzing infinite scenarios in my later blogs.
Yet might seem intimidating at first sight, but it does mean more prospects. Proper use of IT can land you a wealth of information, but the crux of the matter lies in PROPER ANALYSIS.
Let me shower you with some data & analysis.
You are more or less satisfied with the US market. But should you stick with it for 5 years with 90% of your portfolio invested in it? IMHO, it’s not a wise decision. It’s the market most prone to terrorist attacks, in the scale of 9/11 or even greater. Such an event would severely erode your stock values. Besides, you can factor in other stuff like major changes in foreign policy after the Dems come in 2008 + the fiscal deficit + the rise of the Euro + Chinese “flooding” + overdependancy on foreign oil + a zillion other threats, which I’ll itemize in my later blogs.
The other day, somebody asked me, “ Tamal, I’m going to buy some index mutual funds in India. You think it’s O.K. right now?” Well, this is just the wrong moment. The Indian markets going on a bit of hype right now, so I told him to wait for the next big correction. And I mean BIG. Like the SENSEX should fall to at least 11,000. It could even go below 10,000 once again. That’s stupid, you think ?
Think again. Nowhere does the maxim of Warren Buffet’s market guru Benjamin Franklin : “Mr. Market is a neurotic person” hold so true as in India.
The Chinese market seems better than the Indian market. So, as an overseas investor, should you invest in the Chinese market on a long term? Nope. Because besides being a controlled economy, remember the market’s all about PERCENTAGE OF INCREASE. China will be leveling off.
The other day somebody told me “Do you think Japan is a spent force, Mr. Mukherji?” This NRI was thinking of buying some Japanese penny stocks especially in the finance sector. He had no idea of their record forex reserves + gold reserves + their strategic real estate holdings.
Buy euro or bullion ? Which is better in a stable economy, and which is better if there is a conflict with Iran?
Buy real estate in Calcutta or the NCR?
Should you set up a textile manufacturing unit in China or in India ?
If you’re thinking of “outsourcing”, is India really the best choice or are there some other countries you still haven’t thought of?
I’ll be analyzing infinite scenarios in my later blogs.
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