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Thursday

Egypt

Last time we talked about as a closing statement the uprising in Tunisia and Egypt and some other Middle Eastern countries. I was wondering if this can happen in India also. Now in a blog of personal finance why am I discussing the same? I will come to the same soon.

Let us look at the common factor in the countries where this leader less uprising has happened:

  1. Homogenous population: Mainly Islamic countries, with Arab population. ( All Arab countries are mainly Islamic but all Islamic countries are not Arab)
  2. Long history of corrupt dictator ship.
  3. A large well educated middle class that aspires for more.
  4. High level of unemployment
  5. No strong opposition leading to leaderless uprising, which is a new phenomenon.

Comparing with India we do have some common factors like corrupt government, well educated middle class that aspires for more.

But the similarities end here. Our Islamic population though substantial in number is actually a minority in the country. Then our population is not homogeneous with all kind of languages, and ethnicity being present over here.

But the biggest differentiator is that we do not have a dictatorship. It is a different matter that once elected our corrupt Netas wants their butts to be glued to the chair forever. We also have a strong opposition (equally corrupt mind you).

But the biggest reason I do not thing we will not have an uprising like Egypt or Tunisia etc. is that we have a fairly robust media. We do not have any kind of censorship on the media in the country, including the new age media like facebook etc. So the media allows people to keep on venting out their frustration in small doses and it never reaches to the levels when the vessel explodes. But these problems in Middle East etc are causing ripple effects around the world leading to plunging of stock markets.

This in my opinion is a good opportunity for the long term investors to simply jump on the stocks they have been eyeing for a long time but did not buy as they were kind of expensive.

This is what I plan to do what ever money I have I plan to put it in our stock markets and will keep on doing the same. As I firmly believe there is nothing fundamentally wrong with Indian economy and the spooking of the BSE is more of a short term reaction and the markets will bounce back once some of these issues that are external to India go away. If at that time you are not already invested in market you will miss the next big wave of growth in the stock prices in India.

Do you really want to miss the next big boom coming to India? Choice is yours.

Thanks for reading.

2 comments:

  1. that is good to know....thanks

    ReplyDelete
  2. Well SUB, market is up 2K from the date of article so right on one point. But we have Anna Hazare starting a revolution here, but happy 2 b wrong there.

    Thanks for reading.

    ReplyDelete