Conversations with strangers on flights bring up interesting insights. Once they know you are a serious investor, the conversation turns to assets. Most people look to validate their own ideas. Once the conversation warms up, “Real estate can’t go down” is a strong opening defence. I would wonder to myself if one invests such large sums to gain or simply avoid loss! The bigger the bet, the greater the risk. Real estate is all about betting big. If you bet big, it has to be only to win big. When you are in doubt, stay away. The next line of defence is predictable. “I don’t have anywhere else to invest”. If you feel that no asset class looks attractive, stay in cash. But then, nobody likes to stay in cash. “How about equity?” The question will usually trigger judgments. “Markets have already gone up too much”. And so, they keep waiting to invest. Or, choose an alternative just for the sake of doing so. Markets have kept rising over the past 25 years. Waiting has seldom worked. One needs to keep investing steadily. Remember, India is set to become the world’s fastest growing economy. Showing faith now really matters. Before it becomes too late, board this train.
It’s a long and winding road from skepticism to euphoria.