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ithoughtwealth

I wrote to a close friend in the USA a decade ago that his savings must be in gold and not in dollars. He obviously didn’t like what i said. Mails flew across the Atlantic about how resident Indians did not understand the American way. Now, I am pleading with my friends in India not to buy gold now. I believe there are much more intelligent choices. I am sure this will also receive the same share of rants.

The question really is – Why do we have so much trouble making simple and intelligent choices?

The answer lies in only one thing. The fear of being left out.

So, everybody does what everybody else does. Society gets stereotyped.

Just like everybody has a gym subscription, attends music concerts, has celebrities recognizing them, wants the comfort that a lot of people know them, buy the same mobile phones, drive the same cars, stand outside the same restaurants waiting for their turn ( I really hate this one ), we do our investing too. Salvation is about not getting left out. So, we crowd everywhere and crowd around everything to feel that we belong. The overcrowding itself will ultimately make us feel that we are only on the fringe. We really don’t belong. All our efforts actually meant little and made no difference to the outcome of our lives. And, this is the really tough one. We need to begin all over again and find another road to a new destination. Where do we go then?

There is the road less travelled. Actually there are several of them. You then try to choose one which takes you to your destination. This time you are spaced out, chilled out totally, not expecting too much, just letting things be and accepting what comes your way.

Taking this approach with material things will be disastrous. You must neither be a `Me-too’. Nor must you be a `Chalta Hai’. I have learnt this one lesson early and it helped. Actually, it made me.

But, I allowed myself to be left out to emerge later as one who called right. I still do. So, i believe in tomorrow’s world always and don’t expect today’s world to remain so. It is in this approach of envisioning the future that one can change his own fortunes. Today is all about tomorrow.

Are we on the same page?

Shyam Sekhar.

A note from Shyam sekhar, founder and ideator of ithought.

Stepping out of your comfort zone.

You have just finished doing 50 pushups and your trainer being ruthless orders another 50. Drenched in sweat and exhausted you don’t think you can do take one step further, leave alone do more push ups. But your trainer will not take “NO” for an answer. He keeps at it till you get back down on the floor. You manage 1, and then 5, and within a few minutes, you have done 20. Motivated, and feeling good about yourself, you go ahead and complete the 50. You rise with a new sense of confidence, one that you achieved because you stepped out of your comfort zone.

“Move out of your comfort zone. You can only grow if you are willing to feel awkward and uncomfortable when you try something new.” – Brian Tracy

Similarly, when it comes to money matters, we all have our familiar methods of operation. There are some who firmly believe having money tucked away in a bank is the best option, while there might be other who invest in stocks and shares. But, to see how far you can stretch your money, you need to take a chance, take some risk and give it a shot, to reach the goal. The first step will be difficult, but once you cross that and see the results, you will be much more willing to step out of your comfort zone and go further ahead.
For many of you, pushing yourselves into a new territory is second nature, for many it is a nagging thought hovering in their minds, but not put into practice yet.

The 5 golden points of Going beyond your comfort zone-
1. Be open to new ideas and suggestions.
2. Be willing to take risk.
3. Be patient.
4. Learn from mistakes and experiment with alternatives.
5. Have control over your decisions and never go overboard.

MAKING UP YOUR MIND ON THE MARKET DIRECTION

 

The markets have a way of catching us on the wrong foot. When you see magazine covers boldly printing a headline – Sensex @ 12000 , we see the index rising in the subsequent weeks. As an investor , we will end up feeling left out if we stay in cash in anticipation of a crash.

Market crashes are not events which follow magazine cover stories which are negative . They usually happen after a stupendous rise in valuations and when investors show maximum appetite for stocks.

Now that the magazine cover stories giving pessimistic views are behind us, it may not be a bad idea to go contrarian.

The factors favoring a positive view are gradually adding up. Let us list some of the factors:
1 The Indian economy is growing at a predictable and healthy pace. 8% plus GDP growth is something unthinkable for  most countries in the developed world.  This growth rate would mean that several sectors should see higher growth within the economy.

2. The monsoon should be closer to normal. That augurs well for agriculture and food inflation which hurt badly last year. A higher base effect would mean that food inflation will not come to hurt in the next 12 months.

3. The government has hit the bulls eye with the licensing of telecom  . The thrust will now move to disinvestment of PSU’s where we will see a surprisingly high mobilization way in excess of budgetary estimates.
That should mean that the fiscal situation will look much better by the year end .

4.  The DTC will make more investors think of investing in capital markets as there will be adequate incentives to invest more.  Therefore the per capita allocation of funds to capital market will rise. There will also be a rapid growth in the investment culture as the demography changes. We have a high head room to expand the reach of financial products and the next few years will see a paradigm shift in investing.

5. GST implementation  will further act as a growth fillip as the parallel economy will continuously lose out and the real economy will gain several basis points of growth from migration of business.

6. The telecom revolution in the making will see a second wave of transformation of businesses. This will change the way we work and provide a fillip to growth while raising efficiency and competitiveness.

When the real economy has several positive factors working in its favour, it will be a safe bet to make our investment  decisions  India-centric and use every volatile movement in  global  markets as a buy opportunity in India.

We should now watch out for  magazine covers which scream ‘SENSEX 28000′.

Then we must probably turn bearish and hit the exit button. Till then , fasten your seat belts. The INDIAN STORY IS HEADED FOR A SMOOTH TAKE OFF.