This thought encountered my mind during the global recession which we saw in october last year.So as its anniversary is nearing and global investors including those in india and the global india centric funds are afraid of the months september and october as a 3 year old kid is afraid of ghosts.
Why should they be not afraid because only last year these months triggered the fall in the markets which no one by any means could have ever expected.The memories are still fresh and once being engulfed by the fire (of recession ), they dont want to take any chance this time..human nature it is.
Stating as per the record , the statistics had shown that indian stock markets has outperformed every other asset class in the long run.
The World Bank has improved its GDP forecast for developing countries including india as india has stood strong in front of the global recession due to its own domestic demand.This is the first tie i have realised the benefit of 1.12 billion population.
Now coming back on the point which through which i opened my discussion was my thought last year.
After watching the share markets tank , and the investor sentiment being so low , i came up with a law or a simple rule of economics .I dont know if someone has already proved this law or acclaimed it to his glory but the thought transformed law of economics is that -" in long run the economy of the world cannot be negative".
This law explains the fact that in long term the collective economy of the world will always grow till the time even the last of mankind is present on the earth.ther will always be growth inthe economy.The cycle of growth may not be uniform though but there will be growth.
There were industries not only in developing countries like india due to its high domestic demand but also in developed parts of the world that grew during recession and infact the only environment they need to grow is recession.
Spotting the trend is the key to identify the ups and downs of the economy growth cycle.Only those with the farsight have achieved success the most.So whatever the scenario is remember two things -
1.the cumulative growth of the global economy will never be negative and
2.spotting the future trend is the key to success irrespective of the environment.
By following these two strategies one can easily surpass the haunting ghosts of the september and october.
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