>2012: The World Is Not Coming To An End…

Considering the way 2011 is being looked upon by investors and non-investors alike and inferences being drawn for 2012, it seems that the prophecy made by someone that ‘the world will come to an end in 2012’ is being taken too seriously!


Well undoubtedly if we make a list of the positive and the negative events of 2011 the Well, undoubtedly, 2011, latter will certainly outperform (we are not making the same here though). However, to assume that the world will not be able to rise above the challenges, sooner than later, will be naïve. Then why be pessimistic? If humans don’t evolve in terms of solving financial problems, tackling nature’s fury, and achieving improvement in technological and capital efficiency, then who will? How will the world grow?


And with India yet to cover substantial ground to reach the coveted ‘developed economy’ status, rest assured, the 1.2bn Indian workforce is working towards this goal. Add to this the 1.3bn workforce of China and we get over 35% of the world’s ‘young’ population seriously racing to be part of the next super powers.


With the above optimism and faith in human prowess, and not trying to undermine the near-term challenges that need to be tackled, we look at a set of Q&A (definitely not exhaustive) that should help enlighten equity investors about many issues that are important from his/her investment point of view and may be at the top of his/her mind.


1. How is the global and domestic macro environment stacked up?


2. What are the headwinds that are collectively affecting consumer spending / corporate investments / economic growth / investor sentiments / stock market fortunes?

3. What is the probability of an improvement in the domestic economic scenario in 2012?


4. So, when can one expect an easing in RBIs monetary policy?


5. What global/local indicators must be watched out for in 2012 that will have a direct positive/negative impact on Indian equities?


6. At what level is the market expected to bottom out?


7. What should be the investment strategy for equity investors in 2012?


8. Which are the sectors one should look forward to in 2012?


9. Is there a possibility for an investor into Indian equities to make money in 2012?


10. Ok, so what is the conclusion for 2012? Is it the end of bad news?


To read full report: STRATEGY
RISH TRADER