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Threat of doom is hanging over investment markets

Seems like a bad time to be an investor, doesn’t it? Somehow, there’s a threat of doom that’s hanging over the investment markets. The frustrating part is that it’s just hanging there without either becoming real, or by dissipating.

Updated on: Jul 25, 2011, 20:45:06 IST
Hindustan Times | By
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Seems like a bad time to be an investor, doesn’t it? Somehow, there’s a threat of doom that’s hanging over the investment markets. The frustrating part is that it’s just hanging there without either becoming real, or by dissipating.

HT Image
HT Image

The sources of this miasma are many, both domestic and foreign. Domestically, any investor who cares to look can immediately come across any amount of reasons for being pessimistic. It won’t be easy to end the series of interest rate hikes that are going on.

The occasional flourish of posturing aside, there’s no sign of anything that would eventually result in businesses getting the kind infrastructure they need. On the other hand, problems arising from the antiquated land reform framework are becoming a bigger issue by the day. Basically, if you plan to do business in India, just avoid sectors where you might need infrastructure, finance, labour or land.

The rest should be OK.

Jokes aside, from an investors’ perspective, the news from elsewhere in the world isn’t great. Southern Europe appears to be a long list of economic dominos about to topple at the slightest push. Across the Atlantic, American politicians have apparently decided that the excitement of experiencing a US sovereign default must not be left for future generations; we must experience this cataclysm right now.

No, that doesn’t have anything to do with religion. It’s to do with the general faith that despite problems, most businesses will do well, most stocks will eventually head higher and the worst thing for long-term investors to do is to stop investing when things don’t look good.

 
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