STAY SAFE DURING THE
CRISIS
Previously, I have given a possibility of a crash probably
in 2015-end or 2016.
Now, RBI governor Raghuram Rajan (RR) stated current situation as
1930-like-crisis or The Great Depression.
Link:http://timesofindia.indiatimes.com/business/india-business/World-economy-may-be-slipping-into-1930s-type-Great-Depression-Raghuram-Rajan/articleshow/47827821.cms
I have used technical analysis, whereas RR have used
fundamental analysis. Results same.
Previously, RR predicted the 2008 crisis, way before 3 years,
in 2005 in his book.
The predictions came true after 3 years.
Similarly now, if one goes by this simple mathematics, one
can say that the next crisis might come within the next 3 years. Well,
possible.
Whereas, I am just a kid. I was nowhere around the market in
2008. I don’t have such RR-like-experience (He is a big man, I am nowhere
around him). But yes, many of my predictions have also come true in recent
times.
Summing up, possibility of slowdown in economy and crash in
stock market looms.
What should retail investors do? (Not pointing retail
traders as they can make money any day)
If you are a weak-hearted person or your risk-taking
capability is low or very low, you should completely stay out of the market and
put your money in safe havens like bank FDs.
It means that, even if the market rises to 9000 or 10000 or
even higher, you would completely stay out of the market and return only after
the crash.
The medium to strong-hearted people can start taking their
money out from the market slowly, as the index rises higher, and put into bank
FDs, estates, gold, etc.
Note- every items cannot deflate at the same time, money
will always be in the system, because the money has to grow. What it means, is
that, if there will be crash in the stock market, their will be surge in other
products, be it gold or real estate, or other commodities.
Hence take your 3year term decision wisely and make the most
out of it.
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