The business conditions haven't changed much in last few months. The signs of slowdown are now visible in some sectors, and now the Govt-bodies are also conceding to it. Biggies of the corporate sector have made multiple pleas to the Govt to push the reforms. Hopefully things will move.
Human minds works with a negative bias. The default mode of mind is to ignore the good things, and accentuate the bad things. This worked well in hunter-gather environment - but now, this trait is wired into our brains forever. Even without any external threat, mind makes its stories and produces unnecessary anxieties. Rick Hanson (Buddha's Brain) tells this as being in unnecessary flight/fight mode and unhealthy for our body.
Looking at the brighter side is equally important trait, which leads us towards development, growth, and entrepreneurship. Dr Martin Seligman – the positive psychology, and learned-optimism pioneer – says that we usually forget that nothing in this universe is permanent or prevailing condition. Things change for good. And its important to keep a tab on such changing and uplifting scenarios.
In past few months, few sectors have shown good movements.
• Power – Govt is trying to do its bit, and industry is not letting off Govt. Power prices in most of the states were increased last yr, and are again looking to be hiked this year. A recent Crisil report suggests that there is a big lag between rise in income levels and real power prices – i.e. consumers are willing to pay higher prices to get regular supply of power. Moreover, fall in coal prices internationally is good for Indian power producers.
• Cement production and prices are up in last few months, despite slowdown reports on infrastructure front.
• Consumables are doing well.
• NBFCs, catering to home-loans and auto finance are showing good growth.
• Overall, India, even within BRIC, isn't looking as bad as reported – Read this
(((Do you see any more? Send me the bright shoots which you can find around.)))
Markets are reasonably priced – in last several months, many things have gone from reasonably priced towards higher valuations. We are adding to our old positions, and are allocated comfortably.
Landmark
I attended this course recently - usually referred to as 'The Forum' globally – It was started in US in 90s. Its either loved or hated, due to its structuring and flow. The coaches rip apart the blind-spots and past foundations of the participants, and helps one see the past baggages, which aren't any good for creating the future which one desires. I recommend this, if it is available in your country – go and check it out.
