I had been out of the country for sometime. Even though I wasn't out for too long, things seem to be changing constantly in India. Within a period of 10-11 days lots has changed in Bombay/Mumbai. The airport is getting modernized, a new highway near the airport is functional, a new TV channel was launched, new buildings and shopping centers are ready, and several new shops have cropped up near my place. All this within a matter of just 10 days. Maybe these were the 10 days when all this change had to happen. Maybe it was a sign for me to take notice of the Indian economy even closer and let me know that markets are not the only barometer of economic growth. Change is good. It is good because it is inevitable and permanent. As they say the only thing permanent is change.
Politically speaking too lots happened, and in the end, that change did work out for the better. Crude prices also have gone down since there highs, and I guess my assumptions along with inputs from a few friends about them not staying up for too long weren't all that wrong. Not that it means anything and most probably it is just sheer co-incidence, for all we know crude could have gone much higher before it corrected.
People might have seen the chaos in the Parliament, however there is nothing new about seeing politicians behaving the way they were. It would have been abnormal had they behaved any other way. In fact things are finally looking good for our nation. With the nuclear deal going through India is going to stay in the good books of several Western nations. This also means more funds flowing in from pension funds in the future. Had the deal not gone through the reverse would have happened. Again when I talk about future I'm not really talking about the next six or nine months. It is like when a child gets admission to a good college. His life doesn't change overnight or within six months, but it is a good start and a positive sign.
A person who was short made a heavy loss today and told me how he felt that such a huge surge in the Index was illogical and irrational. I remembered something which is extremely useful for all of us- especially for those of us who are traders. We always need to remember that markets can stay irrational for longer than we can stay solvent.
Change is what creates wealth. Welcome change and make sure you use it as an opportunity.
Does Boldness Change Everything?