Dear Friends
As a logical precursor please read the Part - I article written by me vide the below link:
http://sanghihari.blogspot.com/2011/10/introduction-to-capital-market.html
The Gold price is going up and simultaneously equity market
is going up too despite the fact that Industries on ground are not doing well
due to onset of Global Pandemic caused by Corona Virus. The fact remains that
majority of MSMEs have got wiped out, hotel industry has come to stand still
and Hospitality industry is in doldrums. All these indicators are signalling
that there is large scale manipulation in the stock market is happening as
undercurrents & preventing the real picture to come out which is
contradictory to the performance of the present industrial climate based on
pure funda mentals.
I have a strong sense that next couple of months, stock
market in equity segment is heading for a big crash. It is a great opportunity
for small and retail investors to make gphenomenal returns on investment as one
time life opportunity.
Generally, the small investors consider investment in Fixed Deposit
as a safe bet, but it is a complete misnomer as any investment should be driven
by the principle of Return on Investment based on risk-return trade off. At the
present juncture investment in Paper Gold (Gold Bees) in equity market is a
better investment option as it is giving you returns of more than 10% pa and will
gallop in the next few months.The current price is around Rs, 48,000/- &
will go beyond rs. 60,000/-.This indicate thst an investor can make better returns(more than 25% in less
than six months which is more safer than
investing in fixed deposit at current rates
Let me explain the inconsistency of the situation and logic
behind the argument:-
There is an inverse correlation between the increase in price
of gold & the behaviour of the equity market. Whenever
the equity market or real estate market
erodes, the gold price rises as Gold becomes more attractive & stable investment
option compared to equity and real estate.
The inconsistency now is becoming very clear in the present
stock market scenario as on one hand
Gold prices are rising and equity prices are also rising. Why is it a signal
towards crash? The real investor knows that investment in the equity market
driven by industries is collapsing and is not based on fundamentals but some
section is tinkeringby manipulating the fundamentals. Thi is the ereal fact on
ground while the real scene is that they
have started shifting their investment In Gold for stability to their
investment.The the big players know the safest bet during an impending downfall
in the market. My hunch is, the equity market is being manipulated by some
unexpected quarter to make the equity market seem more attractive, by pulling ithe
small and gullible retail investors who
will erode their net worth in case of a impending sudden crash.
I see in the above economic scenario as an arrangement of a
great opportunity to make amazing return in the stock market. My advice is that
every investor liquidate their portfolio and shift to paper gold as the equity stock
market will collapse in the next couple of months.By doing so the investor can make
more money in the following ways:-
1.
Investment in Gold Bees-or paper Gold will have better Return on
investment (more than 25% in less than six months) which is a direct trade off
over Fixed deposit &
2.
Buying back the same equity portfolio held before thwe market crash at
the lowest prices, thereby preventing the notional loss on the equity portfolio
actually held in the current market scenario. The investor will make amazing
returns as the same portfolio can be purchased at a much lower ratewhen the market
crashes which will bounce to real prices when the market stabilises in few
months ater the crash.
3.
Simple Moolah mantra is to shift your investment from fixed deposit &
equity to Gold Bee(Paper Gold & sell the Gold bees & buy the same
equity portfolio during the impending market crash in next few months.
4.
My prediction is that market crash will happen between in the period of
September to December 2020.
Small & retail Investor let increase our investment value
in a troubled times
Warm regards with love
Hari Rao
Former Civil Srvant from IRS 1999 Batch
