Yes……We sense things when they are about to come……..The Peacocks Dance before Rain, The Birds start chirping before Storm, Animals run Helter Skelter before an Earthquake comes and many many more.
Similarly, we humans can see what’s about to coming from the environment and developments around us.
If it’s Rains while going home we expecting that Pakoras would be ready when we reach home, after a Good Quarter Results, We would expect that the Boss would treat us for a Beer today and When India Wins an Exciting Cricket Match we know that the first half of the office time would be devoted to VVS Laxman’s Batting and Munaf Patel’s Bowling …… Some times it’s true and Some Times…It is not. But we don’t stop Assuming.
When I was a Student, I noticed an over flow of Advertisements on TV and Magazines of MS Shoes, owned by one Pawan Sachdeva. After a Month, MS Shoes East Ltd. announced its IPO. And then, I could understand that a base was being created by them through this mass Advertising.
After that, I started to preempt things by the happenings around and most of them came true.
This Sunday while watching “Ek Tha Tiger”, I saw a Long ADVERTISEMENT of a Finance and Brokerage company Motilal Oswal Securities Ltd. This looked strange as I read a week before that most of the Brokerage firms are gasping for breath in this kind of Markets. Before I could finish gasping on such a long, well made advertisement by a MOSL, another one appeared. This time by Birla Life Insurance Ltd.
https://www.youtube.com/watch?v=0OCwisDoBWE&feature=plcp
And I looked at my Wife who also happens to be a “Certified Financial Planner” and asked “Is there something we are missing or is there something Cooking that we just got whiff of?” She nodded in affirmative.
A Person whom I always admire is a Friend’s father…and he use to taught me that…”Agar kaam karna hai to Seengh Ghusa do”, Literally means….If you want to do or learn any new work, then Put your horns inside and start Participating/Observing, Playing and get the Knowledge”. When the time is right and the Game is BIG, Then only the players who are in the field will WIN and not the ones who are outside and are contemplating to enter then.
Similarly, MOSFL and BIRLA has realized that this is the Right time for an upswing and the earlier they start getting refreshed in their customers mind, the better.
They surely know something that we don’t do.
And then it stayed on in my mind and I realized some more points in favour of a long awaited uptrend in the Indian Economy and Stock Markets.
(Interest and Intent Quote Borrowed/Learnt from Alok Rodinhood Kejriwal)
- Mr Pranab Mukherjee being elevated as the President of India and Mr Chidambaram being the New Finance Minister has brought a smile to many a face. Especially one related to Indian Industry and Commerce. A Friend of mine privy to some government happenings mentioned that the Finance Ministry officials have been asked to pull up their socks and start performing…Which means, Controlling the Inflation, Increase Investments and not Savings, Making Changes to optimally utilize the Assets under Governments, Scaling up Disinvestment in PSU’s, Requesting Banks to issue more Consumer Loans etc etc. And the Good News is that it has started happening. Hopefully the results would be out soon.
- After the Mutual Funds were introduced in India, more than a decade back to 2008, Mutual Funds have consistently given 15% Tax free (if sold after 1 year of buying) Returns on an average till 2008. And then it dropped after the momentary downtrend in the World Economy as well. In India whenever anything goes wrong; many Naysayers crop up and give the Suggestions which are not required. Unfortunately, these are the people sitting on various panels like SEBI, IRDA, TRAI, AMFI etc etc.
And they concluded that the 2% Entry Charge Levied on the Investor is uncalled for and hence issued a diktat to abolish it and in turn leaving lakhs of Mutual Fund Agents unemployed.
Mobilising Money for MF was no longer a Lucrative Option and agents showed Little or no Interest in mobilizing money. This lead to people to SAVE in Fixed Deposits as people finds it easier to invest in a Fixed Deposit in absence of an agent.
What we people need to understand is that Savings and Investment are not the same.
At Current rates pre tax deduction, we get 8% in Fixed Deposit, which is Even 1 percent less than current inflation rate.
Coming back to my point….in a recent meeting of Aug 16, SEBI in his ORDER has allowed AMC’s to charge extra from investors and in turn incentivize the Mutual Fund Agents. Frankly Speaking…Consumers were never affected by removing the Entry load, so they would not even Crib when it is levied. This development may again motivate the MF agents to mobilize more money for the AMC’s..
More money would mean more Cash Flow for AMC’s which they WILL have to Plough back in market by buying Stocks which look attractive by the recent hammering. More Buying Should/Could/Would lead to markets looking upward and recreate the interest of retail investors who are waiting in the wings with cash to Invest as and when the Market Sentiment Changes.
The Title of this Blog Says “You can Sense the aroma of Coffee when it is being Brewed”. I mean to say that with these developments, I can smell a Strong Bull Run Coffee being brewed, But Are we prepared to relish it?
If what is Stated above Happens….I want to call it “”Bull Run Coffee””
Disclaimer:: I am not an Expert in Financial Markets and what I have written here is just based on my Observations. I could be totally Right, or totally wrong. I have written this Blog, just because I felt like expressing my views on this.In January, earlier this year, I wrote a Similar Blog Why February 2012 is the Best Opportunity to Invest!!. Which did not Work. When I posted the Blog, Nifty was at 5190, and touched a High 5564 of and a Low 4849 to reach 5384, where it is today.