Believe in the recovery.

The investor’s tool kit – a cool head, adequate liquidity and a strong urge to buy good stocks.

Data is increasingly a critical market driver. These days, we get data from all over and our markets respond to local and global data. The Indian data still doesn’t look good. Manufacturing data still looks clearly like bad news. The US data, on the contrary looks good. That is also bad news as the markets fear the consequence. If US growth rates stay high, then the U.S interest rates may rise sooner than later. That would mean that FII’s could take money out. Broadly, investors are obsessed with the immediate past and the present data. If one took a longer term view, Indian data will only go one way. Looking at short term data to make long term investing decisions could again leave investors caught out of the market. One clearly needs to leap beyond data and rely on faith. Our economy will recover. The question is only “when” and not “if”.

istrat: Race like a tortoise. The markets will keep pace with you.

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