Garbage In, Garbage Out
It is no secret that novice investors like you and me have tender and highly impressionable minds. We get influenced by what we see and hear.
If one listens to the narrative of junkyard politicians like Arvind Kejriwal, Mamta Banerjee, Sitaram Yechury etc one gets the impression that that demonetization has crippled the economy and that there is no hope for revival.
Even before demonetisation, subdued economic activity and contracting investment demand. After 8 Nov, a catastrophe unleashed. pic.twitter.com/aVPG2bASYp
— Sitaram Yechury (@SitaramYechury) December 5, 2016
— Brijesh Goyal (@brijeshgoyalaap) December 5, 2016
AAP hiding its failures by uttering lies.In ist 7 months of current FY only 25% of revenue target was reached.Was demonetization d reason? pic.twitter.com/AO5jjCi7QO
— Vijender Gupta (@Gupta_vijender) December 3, 2016
Deliberate buffoonery by Arvind Kejriwal and Mamta Banerjee to benefit NAMO?
The statements by Arvind Kejriwal and Mamta Banerjee are so outlandish and unbelievable that some have started asking whether they are deliberately so worded as to rouse sympathy and support from the public for NAMO.
मैंने पहले ही कहा था मोदी जी की डिग्री फ़र्ज़ी हैं। He has little understanding of economy. https://t.co/egdcWAOKrY
— Arvind Kejriwal (@ArvindKejriwal) December 4, 2016
देश का PM इतना सस्ता कभी नहीं बिका… https://t.co/AgVHvqayTc
— Arvind Kejriwal (@ArvindKejriwal) December 3, 2016
Brand awareness for PayTM
Arvind Kejriwal’s attack on PayTM, for instance, on the day of demonetization, created enormous brand awareness for PayTM amongst the public. Several rushed to download the app to see what it is all about.
Paytm biggest beneficiary of PM's announcement. Next day PM appears in its ads. Whats the deal, Mr PM? https://t.co/lfP0PrQICQ
— Arvind Kejriwal (@ArvindKejriwal) November 10, 2016
Thanks to Arvind Kejriwal’s tweet, PayTM has left its arch rivals like Mobikwik, Freecharge and SBI Buddy far behind.
In fact, PayTM is now being referred to in the same breath as debit and credit cards.
— Kiran Vasireddy (@KiranVasireddy) December 2, 2016
he's been asked to make stupid statements that will look intelligent only to pseudo liberals while janta realise that only modi makes sense
— Maithun (@Being_Humor) November 23, 2016
Respite from hardships of demonetisation by talk of Coup by the Army
Similarly, Mamta Banerjee’s foolish outburst that the Indian Army has launched a coup to take over West Bengal provided immense respite to NAMO because it diverted attention from the hardships that the masses are facing owing to the shortage of currency.
— Neeraj Khandelwal (@neerajassam) December 2, 2016
In fact, the CPM, which is the arch enemy of NAMO, suspected a rat and alleged that Mamta was orchestrating the rant on NAMO’s behest so as to “deviate from relevant issues”.
Mamata Banerjee is working as the 12th man in Modi-Amit Shah team, she wants to deviate from relevant issues: Mohd Salim CPM pic.twitter.com/LSe2j2RSp2
— ANI (@ANI_news) December 2, 2016
Gurus rush in to counsel novice investors from being misguided
The Gurus have rendered yeoman service to prevent novice investors from being misguided by the junkyard politicians. They have united as one to assure novice investors that demonetization will prove to be a “game changer” and will benefit the economy immensely in the long run.
This opinion was corroborated by Kenneth Andrade, the whiz-kid stock picker. Kenneth solemnly assured us that demonetization is a “huge positive” and the “best case scenario” for buying stocks.
Sowing of rabi crops rises 27% despite note ban
— Rahul Saraogi (@RahulSaraogi) December 3, 2016
Retweeted Vala Afshar (@ValaAfshar):
— anand balaji (@andybals) November 6, 2016
Top ten stocks to buy now
Porinju Veliyath was not content with offering abstract advice. He has cherry-picked ten top-quality stocks which will not only overcome the effects of demonetization but cause immense prosperity to investors.
Demonetization is a temporary blip; its adverse effects are being exaggerated and overestimated
“Demonetization is not that serious an issue. The negative impact is only in the short term and not as bad as people make it out to be,” Ridham Desai said.
“There is no question of a recession”, he added in an authoritative tone.
Indian equity market poised for 15% return next year: Morgan Stanley https://t.co/oS84lVG7Yx
— Livemint (@livemint) November 29, 2016
Morgan Stanley Sees 30% Chance Of Sensex Touching 39,000 In 2017https://t.co/Yk3peWjM0k
— NDTV Profit (@NDTVProfit) November 29, 2016
Grandmother Of All Bull Markets Is Coming
Ridham made it clear that the “Grandmother of all bull markets is coming” and that the next 10-15 years are likely to be a “golden period” for India. He warned that anyone who does not invest in stocks will “massively regret” in future.
His inspirational words are worth being quoted verbatim:
“India is on a structural upward path. The next 10-15 years are likely to be a golden period for India. So anybody who doesn’t want equities will massively regret this hindsight. The younger you are, the more equities you should have. If you’re in your twenties, hundred percent or 90 percent of your portfolio should be equities ….. So I think it’s a golden period. If 2003-2009 was the mother of all bull markets, I call this the grandmother of all bull markets. And we’re just at the beginning. So we’ve really not seen the movie as yet, it’s happening right now.”
Bank & NBFC stocks are the best buys owing to impending rate cuts
Ridham opined that an aggressive rate cut by the RBI is on the cards now as demonetization has slowed demand. The economy will get a booster shot by way of lowered interest rates.
“India’s macro stability remains in its best shape in several years and policy momentum is the best since 2007. Financial conditions look easy and the inflation trajectory suggests more rate cuts are in the pipeline,” Ridham Desai and Sheela Rathi said in a research note.
It is a no-brainer that Banks and NBFC stocks will fly out into orbit as soon as there is any whiff of a rate cut.
Massive contraction in the monetary base and liquidity in India. I expect a 50bps inter meeting rate cut by RBI followed by further cuts
— Rahul Saraogi (@RahulSaraogi) November 15, 2016
Ridham also advised that we should be overweight consumer discretionary and technology stocks. He opined that we should avoid staples, energy, industrials, telecoms and utilities.
We have to bear in mind Ridham Desai’s advice that investors who do not buy stocks will “massively regret” their decision in the foreseeable future. We have to adopt a systematic buy-on-dips strategy and scoop up top-quality stocks when the opportunity is there!