25 Jul 2015

Best Time to Invest in the Market

Can anybody forecast, foretell or guess the best time to Invest your investible funds? The answer is a big no as it depends upon economic and market conditions including future course of events which have not yet happened. But keeping in view the overall world economic scenario when one can easily visualize that all over the world, the national governments, are struggling hard to create employment, infrastructure, provide for the statutory duty of the governments like defense, health, transport and education etc., and resorting to deficit financing of growth with fiscal deficits going up and up. In such a situation the liquidity position gets worsened towards the end of the fiscal year for example in India, the government starts thinking of tightening its belts after December every year based on estimated collection of revenues through direct and indirect taxes, so as to contain the fiscal deficit within the quantum provided for in the Budget so that carried forward deficit does not increase so as to necessitate fiscal measure for the next year as governments are hard pressed to contain the inflationary process and burden of taxation on the common people. Tightening of the belts, I mean is squeezing the liquidity from the market whereas every state, local bodies tries to utilize the budgetary allocations in a hurry so that the budgetary allocation do not remain underutilized. At this junction interest rates are bound to go up (Invest in interest yielding instruments) during January, diverting liquidity from stock markets and other avenues attracting investors having taste for risky investments, stabilization of value of rupee in terms of US $ making it competitive for the exporters to quote higher rates for their products and services in terms of dollar and easing the importer till the whole investment climate stabilizes through balancing acts. I think I have conveyed, what I wanted to convey. Stay connected to know more ...  

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