Finally D.Rao about to depart from RBI but not before torpedoing Indian economy

D.Rao about to depart from RBI but not before torpedoing Indian economy- as i have been saying in my past posts also, India has to make a choice between growth & controlled inflation - keeping in view the crores of indians still below poverty line, i think that the obivious choice has to be growth. But D.Rao chose controlled inflation & look at the mess he has landed us in. When he took over, Indian economy/ GDP was growing at a fast clip of 9% in real terms, ruppe was around 40 to a dollar......now he has crashed the growth to 4%, ruppe to 68 for a dollar...... Along with our most selfish pm, this guy has done the most deep & horrible damage to our country...incidentally both of them were rewarded for their incompetance by getting two back to back terms..... Still have faith in well doing indian cos. & keep on investing in them... who knows that this most incompetant gov. may be replaced by the most competant one after the next elections in 2014.....

Interest rates & economic growth / asset prices are inversely proprtional- just like the effect of gravity on all things- not tangile but it is there -the higher the interest rates the lower the EG & A P.ignore this fundamental law at your own economic peril. now interest rates have started to go down in India. so slowly but surely EG & AP will increase!!!

Dubba rao -II the central bank governor is again to be blamed for the luke warm to negative performance of indian economy. i am B.E.(distinction) from NIT, MBA -I di v, an illeterate person basically compared to the RBI governor. but illeterate guys like me can understand that maximum amount of sale in India & any country for that matter happen now through finance-houses,cars,consumer durables...... And D.R. completely ignores this fact. as soon as interest rates are made realistic & lowered in India, our economy will take off like a rocket. but till then we are at the mercy of D.R........

1 step forward & 2 backwards!!!

this has been the long term story of our country. just imagine in 1970's India was a bigger economy than China & how the scenario has changed! & how! at present in Indian economy there is a slow down caused by the RBI Governor with the high interest rate regime. if Duba Rao lowers the interest rates to single figures, Indian will grow by double digits. but that is wishfull thinking knowing that so called inflation & aam adami r the priority for this govt.. when there is a global catastrophe, India politicians & policy makers wake up from their stupor. a massive slow down is looking us in the face in the euro zone. maybe this will shake them awake!!! though it is very difficult to keep faith on equities, that is what has to be done. be company specific. stay invested in cos. which are growing even in this anemic economic situation. This is a good time t invest & get good returns in the next few years.

Blame it on S.R.!- II

Indian GDP was growing at a 8-9% p.a. growth rate 2009 onwards while the whole global economy was recovering from a recession. But then Subba Rao with his convoluted thinking decided to put an end to this growth for the benefit of the so called common man by raising interest rates for taming the inflation.
When a car is going at a steady speed & a good driver wants to slow it down, he takes his foot off the accelerator & mildly presses the brake pedal to slow it down. But S.R. like a drunk driver hard pressed the brake pedal as well as used the hand brake resulting in the car doing a wheelie & almost pointing in the opposite direction (read the rise in interest rates slowing GDP growth). In the process the brake & the hand brake, both, break down. Similarly S.R. has used the rising interest rates to derail the Indian economy in which he has succeeded but has failed to subdue the inflation suitably. S.R. has finished his armoury of raising interest rates & now trying to fool everybody, just like the driver whose car has lost both the brake & the hand brake, he is saying that he will not be using the brakes (read he will not be raising the interest rates further). But we know the brakes have failed & hence cannot be used. But unfortunately the damage to India’s growth has been done.

Another factor coming into play in this scenario is the inferiority complex of Indians. If the west has recession, then S.R. wants that too.
High GDP growth rate & inflation are two sides of the same coin. I think for a country like India with approx. 30% of population below poverty line, we should have HIGH GDP growth as the first priority.
Still keep your faith in equities & keep on buying well run, high growth cos.. u will make good money over the next three years.

Blame it on S.R.!!

India’s GDP growth for Aprl-June 2011 qtr. falls by 50% to 5%. As I have repeatedly pointed out that RBI governor with his ludicrous & anti growth, interest rate increasing stance has brought the growth of Indian economy down to its knees. And then they have the audacity of blaming the global turmoil for this slowdown. No way. The credit for this blunder goes to Subba Rao & S.R. alone. They have set their house on fire ( read slowed Indian economic growth ) & are now have the audacity of trying to blame a fire that is burning a hundred miles away( read slowdown in europe, USA). Developing economies –BRICS (Brazil, Russia, india, China etc)-are like growing kids in their teens who need huge quantity of food etc. but rather than increasing the supply, the RBI & govt. at the centre, by increasing the interest rates are giving bitter medicine to this growing kid ( read increasing interest rates to make finance costly....) with the hope that his appetite will decrease thus decreasing the demand. We did read such a story- is it Nicholas Nicholby?- as kids. In a recent candid interview the Chairman of SBI Bank admitted that there was nil demand for loans for new Greenfield projects from banks's customers. Yes you read it right, nil demand. And we know who is to be credited for this tragic achievement. But not all the central bank governors are being myopic. Brazil is a fast growing economy like India with a problem of inflation too ( inflation at a six year high in Brazil) & its Central bank reduced the interest rates recently there recognising the fact that the global economy is not yet out of woods & growth wherever it is, is precious & should be encouraged. He candidly agreed that monetary policy have effect with a lag – at least a year & who knows what the global economy will be one year from now? Pay heed S.R. to this!!!

Follow the story !!!^^^:)^^^

This is one of the most important principles of investing. I have invested in many cos. –Hindustan Zinc at the price of Rs. 1.4 in 2003, present market price 142 (adjusted for splits); UTI bank(now Axis bank) at Rs32 present market price Rs 1297. But yours truly bought these stocks early & sold them early. There are opportunities galore there to invest in the right co.. And as long as the story is good, stay invested. But as most things in life this is easy to say in theory but very difficult to do in practice. Even for full time professionals it is very difficult to stay invested or increase their investment when the indices have fallen by 30-40% & your portfolio has fallen by 50%. But then the stellar return-I have illustrated above - you get by staying invested does make bearing this pain worthwhile.
To be able to do this in practice you do need the advice of a professional like me.