Tuesday, January 31, 2012

Desperate times needs desperate measures

http://economictimes.indiatimes.com/markets/real-estate/news-/builders-find-ways-to-stay-afloat-hold-on-to-property-rates/articleshow/11680915.cms

Read the above link. The RE mafia is luring cash rich investors and thus staying afloat weathering the slump in the sales. Behind the lines, we need to understand that  they are expecting end users (like you and me) to blink first and fall into their trap. They are holding steady and slightly having upper hand at this moment. The forces working in their favour are

1. Indian Government and their corrupt politicians
2. RBI ( It is trapped into it unknowingly or knowingly)
3. People who already invested in RE ( They are sentiment creators)
4. Share Market ( Sentiment Creator)

But even the mighty federal reserve could not stop the slump in their real estate. We need to wait and watch when the law of natural correction sets in. So far the indications are negative. The indications in our favour is

1. Food Inflation which nosedives showing signs of going up ( ask the vegetable vendor)
2. Many banks started showing negative returns this quarter ( read financial results)
3. Equity markets are at resistance zone
4. News flow from Europe dried down
5. Indian fiscal deficit is at record heights and babus cannot look other side. This budget would be a great disappointment.

Crash is near. Hold on . sit tight.

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