Looking At The Future With Hope

Year 2019 ended on a sour note. Political protests; Net shutdowns; violence in several states; the perception that India is losing its secular character and democratic sheen; all these are bad for business. Every major institution is downgrading India’s growth prospects. However, the stock market is still up, though the indices are propped up only by a small bunch of rising stocks. This lack of breadth could mean a collapse if the mood becomes more pessimistic. Does this mean that you should stop investing in the stock market? No! There could be a crash and there may be a long bear market. You must see that as an opportunity to lower portfolio acquisition cost. Here are some thoughts. First, the Indian economy has a large domestic market, which is currently in bad shape. Consumption is down; investment is down; the government is more focussed on politics rather than economic...