Sailing Uncertainties..

For an investor these times are irritating and challenging, he doesn’t know where to go, what to buy and so on. To be truthful I am in a similar dilemma. But analysis of various factors could prove vital in making judgments.

First let’s look at the general mood in the economy, it's not cheerful, double dip clouds hang over US, Europe facing it's consequences of greediness and East appears as stagnant as ever. In general prospective, the convoluted effect could result in another recession. But that’s not the complete picture, many governments and companies have learnt their lessons from the past, relative risk exposure of companies is far less than what it was in 2007-08 and hedging itself from the depression have been on agenda for many since 2008.

Let's now look at the policy making and decisions that could affect the global economy. In 2007-08 with the fall of Lehmann brothers the govt. were forced to make decision to avoid panic and compromise on various factors and some of those have come haunting us today. But this time is different, govt. and organisations are aware of the problems and the after effect of the incorrect decisions. It’s like advantage of facing the similar problem again.

Lastly let’s look at the growth prospective, business and govt. around the world have negative sentiments and are refraining from investing into new projects or new business, thus making long term growth story a little stagnating in relative terms. But the businesses are known for their mood swings and their scenario could change in future,with amendments on policy front by the govt. things could turn around, solidifying long term growth.

In an all, the clouds are dark and in short term more negativity could creep in, but for an investor of long term this is good news, it shopping time, continuously accumulate the businesses which have sound fundamentals and growth prospective. Average out your old hands if you believe in their business and believe in the concept of investing.