One of the reasons why the stock markets are taking time to comeback is the lack of ‘investible’ money in the hands of people. Most of the money is tied up in various investment options such as shares, mutual funds etc. and are not in a position to be liquefied through their sale and reinvested.
Adding to this, people are losing their jobs due the retrenchments that are happening these days, which significantly affect their income. But for those who have money, there is not a better time to invest. The markets are low, shares are trading low.
But then, there is one entity that seems to have enough money to invest in the times of recession; Life Insurance Corporation of India (LIC). The firm had increased its stakes in ICICI Bank, IOB, GAIL etc.
This might be due to the job insecurity that the people feel, which makes them insure themselves and their assets through insurance companies making the companies have enough money to invest. And not to forget the cash reserves they have.
4 comments:
I have gone through the article. But I think that, it gives very general information about the current scenario i.e. Global Meltdown. I read the article specifically becoz of its title. I thought that some tipsfor common investors will be there i.e. where to invest, which scrips are good, investment in gold etc. An artcle should give information about the subject which is reflecting in the title.
I have gone through the article. But I think that, it gives very general information about the current scenario i.e. Global Meltdown. I read the article specifically becoz of its title. I thought that some tipsfor common investors will be there i.e. where to invest, which scrips are good, investment in gold etc. An artcle should give information about the subject which is reflecting in the title.
Interesting story.
In a recession, there are investment strategies you can take advantage of to avoid losing money when the value of currency decreases. By investing in food commodities and real estate, you can continue to make money during a recession, and come out ahead when inflation occurs.
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