Diwali has always been a time, to welcome Goddess Laxmi along with love, smiles and happiness. I hope all our friends here use this auspicious occasion to welcome her in their lives.
There is an old school of thought which says that when too many people start telling you they want to invest money in something, it is probably a good time to sell that thing and not pay too much attention to it. We have learnt this over time, during the last crash if we recall people were rushing to buy stocks and there was a mad rush of IPOs hitting the market.
Promoters will come out and sell their stake in an IPO only when they feel that valuations are richest. Of course markets are irrational, and that is what makes them so exciting. During the earlier crash Sensex valuations might have been great at 10,000 – but the markets went on to correct further. Similarly valuation might be rich today at 20,000, but there is no sense predicting what happens next.
In the past few months, I have been busy spending time with people who are in the midst of the global financial system. And once again I will stick my head out and say, the world is not yet out of the financial crisis and this time the effects of the crisis will be felt on a much larger scale. But out of all this a lot of good will come out, valuations across the world will become more appealing. Hopefully more people and countries will realize the ill effects of excessive debt and the risks of having a highly leveraged financial system that promotes products like futures, derivatives and currency trading.
Through out times Goddess Laxmi has never stayed with gamblers and people who don’t respect her.
A shift to gold is another sign of things to come. Gold is one thing, I will continue betting on and only time will tell how good or bad the bet was. Studying the financial history of the human race running back even 3000 years, we will realize how good investment gold has been. Once again our ancient Indian culture has propagated the purchase of Gold through festivals such as Dhanteras and Diwali. With the rupee being strong now, gold is still a good option for the long term.
I feel there is no better time than now, to welcome Goddess Laxmi into your homes. In the stock market, as I’m sure all of you must be aware that Laxmi comes home with you once you book profits.
Keep smiling and make sure you don’t pollute the environment and burn money with dangerous firecrackers. Lighting a small diya is so much more beautiful than bursting bombs that harm the aged and pets. Spread the love, happiness and smiles.
Wishing all of you a very Happy Diwali and Prosperous New Year!