Retail Investors - Exercise Caution!!

Nifty has crossed 200 DMA...English media is going gaga!! Retail Investors - Kindly exercise caution.  There ia an aura of pessimism around corporate earnings. There is also uncertainity about the outcome of LS elections. Indian markets have rallied more than 30% from their lows. Markets are nearing the PE level of 15. Given the current economic outlook and expected corporate earnings, anything above this PE level sounds unsustainable.

So, wind up your long positions, book profits. Markets will test 9000 levels again in the coming month. You can buy then. So, it's high time retail investors exercise caution and avoid taking fresh long positions atleast for a month till elections are over and a clear picture emerge.

Think!!

IIM Grads have jumped into the election bandwagon. People like Meera Sanyal and Sarath Babu have entered the election fray by contesting as Independents from South Mumbai and Chennai respectively. I appreciate their sincerity in thought in bringing about a change and reform the country. But can they bring about a change? That's a million-dollar question?

To bring about a change as a law maker, they need to win which is impossible. I request all such sanyals and babus to begin from the grass root level and bring about a change. Bring about a change in your locality. Adopt a locality. Leverage your contacts. Get the local community's support. Improve the infrastructure. Provide all basic amenities and transform it. Show case this to the community. Stand in the municipal elections. You will definitely win. Now do what you have done to your locality to your ward. Then contest an assembly election. Bring about a change in an assembly constituency and then aim for Parliament!!

The hype around sanyals and babus is bound to fade after their defeat in the LS elections. IIM Grads head almost all major MNC firms in India. There are about 1000 major firms in India which are headed by IIM grads. I request these honchos to adopt a village every year as part of their company's CSR initiatives. Improve the basic amenities in the village. Transform it to a world class village!! To begin with, they can adpot their own native village and change it completely!!

Whipping Up Passions!!

Jarnail Singh, hitherto unknown will be remembered not only for his shoe throwing act but also bringing about a turning point in 2009 LS elections!! His act not only reflected the sentiments of the Sikh community but also has the potential to change the outcome of LS polls in 21 constituencies spread across Punjab, Delhi and Chandigarh. Before a month, odds were 15-6 in favour of Congress. Now after this, odds might reverse - 15 -6 in favour of NDA!!

Similarly Varun Gandhi's remarks could possibly fetch another 10 seats for NDA in UP. Similarly, the ealam issue might as well take away a handful of seats from UPA. Nothing in Democracy is as strong as whipping up passions!! Historically too, Leaders have won just by stirring emotions!! Remember how Mulayam emerged by being an emotional friend of Muslims!! How Indira Gandhi won a election by winning a war?? As long as human kind exist, Demagogues will survive. Emotions and Passions will run the roost!!

For those who will not be stirred by these emotions, just watch this Tamasha!!!

Long Live Demogogues!! Long Live Democracy!!

The Bloodbath Controversy

Vaiko has been booked for sedition charges for his 'Bloodbath' remarks. There has been a hue and cry in the English Media about this. He will get away with this remark in the corridors of law. Even leaders like Kalaignar often use the phrases 'Blood Bath', 'Volcanoes will erupt if......'. These are common phrases in Colloquial Tamil. Remarks akin to this are common in almost all street and tap fights in Southern India. He will get away with his remarks!!!

Why did he utter this??

Simply for provoking his rival Karunanidhi and get incarcerated under NSA!! Remember the political mileage he derived when he was incarcerated under POTA for 19 months by Jayalalitha. He was the mascot for UPA in TN during the 2004 Lok Sabha elections. He drew huge crowds wherever he went. He was the Star Campaigner!! Hope Karunanidhi does not commit a political blunder by arresting Vaiko under NSA. Srilankan Issue is all set to dominate the poll landscape in TN. Even Jayalalitha has mellowed down on her stand on LTTE and she is hoping to capitalise on the sympathy for Eazham Tamils which is prevailing in TN. 

Vaiko's speech is just another startegy to force Kalaignar commit hara kiri by arresting him!! Beware Kalaignar!! By bloodbath, he actually meant the defeat of UPA in TN!! Will UPA meet its grave??? Will this election turn out to be DMK's Waterloo in TN???