- Porinju says PE, leverage, prices fell, while value rose
- In wake of global tariff war, Indian markets have skidded lately
- Anand Mahindra says India will stand tall in a trade-war
He seemingly implies that the investors don't lose money on account of short-term volatility so long as macro-economic fundamentals are strong in the economy.
He further writes, "Another correction, 'Rational Investors' will not lose money - rather the businesses they own would continue to create superlative wealth in world's fastest growing economy. Not applicable to those playing with tickers; they will always have reasons to complain!"
A Portfolio Manager for 17 years, I haven't come across any 'INVESTOR' who lost money in the market corrections, including the 2008 crash!— Porinju Veliyath (@porinju) March 8, 2018
While exhorting the investors to buy at the current valuation that happen to be attractive, Porinju says, "What has changed in the market? PEx, leverage & prices have come down and value has gone up. The market, in general, has turned more attractive and safer than 2 months or 6 months ago!"
In wake of global tariff war, Indian markets have skidded lately. In the ongoing trade war sentiment, trade deficit countries such as US are bent upon imposing higher taxes so as to discourage imports into their borders in a bid to balance out their trade deficits.
Exactly a month ago, Sensex was trading above 34,000 points, which had slipped around 33,000, nearly 1,000 points down in less than a month time. Though the market recovered a bit on Friday, still the index is substantially lower than the month-ago figure.
Even Mahindra & Mahindra chairman Anand Mahindra also echoes the same sentiments.
He says, "Not sure why Indian markets seem so perturbed by the threat of global tariff wars. Small, export focused countries stand to lose. Countries with large domestic economies can easily withstand tariff threats. The world needs access to the fastest-growing large economy-India."
He further adds, If India retaliates with tariffs,the effect will be very different from what it was post-independence. Today India's a free-market economy&can access global technology & capital to fuel its own innovative start-ups. It's resource-rich & can import commodities it lacks." He signs off by saying that India will stand tall in a trade-war.
Not sure why Indian markets seem so perturbed by the threat of global tariff wars.Small, export focused countries stand to lose. Countries with large domestic economies can easily withstand tariff threats. The world needs access to the fastest-growing large economy—India.(1/3)— anand mahindra (@anandmahindra) March 8, 2018