Do you track the purchases by fund houses. If not, than start now as they have the reliable info which is available only to select few in the industry. We make it a point to track the statements made by the fund houses. Thus track their actions whenever they undertake fund reshuffles.
Adrian Mowat, Chief Asian Equity Strategist, JPMorgan has stated and we quote “India significantly underperformed emerging markets from November through into early March. Now it’s sort of time when the yield curve became very inverted. Monetary conditions were particularly tightened plus we had the corruption scandals and a government that was unable to really make any decisions. Since then, India has been performing very much inline with emerging markets. As the correction matures, India has a good chance of outperforming emerging markets. For now, I remain bearish and we have been bearish on markets for three months now. Markets are falling for the things that we were concerned about and quite simply global growth is weak. There is stagflation in developed economies with inflation in the US above 3% when household income growth is only 1%. That’s why the economy is weak. People don’t have the money to drive demand. There are similar stories in Europe. What is happening in the emerging world is a simpler and a very normal cyclical story. We have been fighting inflation. Central banks have tightened policy. The idea there is to slowdown growth, reduce demand and eventually the inflationary pressures diminish. So markets were too high and they are correcting lower. This correction will continue but at least we are facing up to the fact that growth is weak.”
JP Morgan is a global financial management house and is tracked worldwide for their actions, It is said that when a ship sinks, mouse leave the ship first and same is the case with decline in the stock market. Whenever market is about to sink, these large fund houses are the first one to exit from the scene and a retail investor is the last one to exit. Here lies the difference in availability of information and thus trade in only those stock tips which are backed by reliable information to ensure that your capital grows at a fast pace with equity market investment.
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