Most Economist Says – Govt should have given DEMAND SIDE PUSH to revive the economy. We have the real secret

4^th October 2019

Most Economist Says – Govt should have given DEMAND SIDE PUSH to revive the economy. We have the real secret

Dear Fellow Travellers,

Greetings from Hitesh! When the TAX cut was announced and the market went up – we had told our clients to sell their recently bought shares and enjoyed the profit. There were big stories of how the tax cut will change the EPS and how it will affect the EASE of doing business in the long run.  As expected, Market gains washed out.

There are a lot of articles and media coverage by various economists on the government steps. Many are supportive as said above but many are saying that the government should have given BUYING POWER to the small guys in terms of lesser tax or some income soap. Their logic – if people have money they will buy and the economy will do well. Apparently looks plausible.

I have a 180* different view on the above. I feel really blessed that I have got the MASTER like BUFFETT to teach me the basics of life and investments very well.

What Buffett had told N number of times?

Buddha used to say everything at least 3 times. His main disciple ANAND was confused with his behavior and asked him – why he is repeating all his instructions 3 times? He said – “In three times also the other guys listen, I will be happy”. Normal minds are too SELFISH in their short-term goals and they hardly listen. The same thing is applicable to BUFFETT’s saying.  

Buffet has said – “Invest in a BUSINESS which any fools can run. Because someday a FOOL will be running the business”. What a profound statement of wisdom.

How BUFFETT theory is applicable to Indian Prime Ministers since Independence?

If you look at the long list of PMs, except Manmohan Singh, I don’t recollect anybody who was qualified economists. If you see the movie - ACCIDENTAL PRIME MINISTER – you will realize that all his skill sets were 100% WASTED by his commander in chief.  

Technically, all the Prime Ministers were equally good or equally bad. But they were not criticized as much as MODI. Why?

There can be many reasons – but only one reason which is going against MODI is that he promised ACCHE DIN and he is not doing enough to make it happen. All guys promise ACCHE DIN and win. But with MODI, he promised ACCHE DIN with smart MEDIA marketing and he brought down the 70-year-old empire of CONGRESS. So, he is in the eyes of everybody. He built up a lot of EXPECTATIONS – in his greed to win – now he is facing the music for the same.

What is MY VIEW?

Before MODI came to POWER way back in SEPTEMBER 2012, I have given a bold call – India will be a superpower by 2032. Yesterday, RAKESH also gave the same kind of prediction in an interview with TIMES NOW CHANNEL. I want to share some facts about NORMAL people’s life.  

The facts of your life: -

1.  You are responsible for the BREAD and BUTTER of your FAMILY.

2.  You are responsible for your retirement planning and kids’ education and marriage.

3.  Whether it was NEHRU or now MODI, nobody is going to come to your home and give you the money.

4.  For a NORMAL person – meeting his own NEEDS and taking his family to the NEXT level is his sole responsibility.  

5.  By wasting time in CURSING MODI or PRAISING CONGRESS – nothing is going to change in your life. In fact, you will become more and more NEGATIVE with the passage of time and you will not be able to take any risk in life.

6.  Those who are finding it difficult to sustain with the change in BUSINESS MODEL – are themselves responsible for not changing when the new players were coming with better technology. Flipkart and Amazon sold Rs.750 Crs worth goods in the first 2 days of their sales. Where is the MANDI? It’s just that the way people buy has changed. Now, if you blame Modi for that – it’s too much. The government has all the figures and they know that people have the buying power and that’s the reason they are not working on DEMAND SIDE PUSH.

7.  Those who are not finding a JOB – they have to blame their parents or themselves for making them BOOKISH. I see many well-educated guys have ZERO practical knowledge in their own field of education. Now, these guys since he is educated / ranker or gold medallist want a CORNER CABIN from day one. He wants the best of SALARY and Best of Post from day one. NOBODY will give that. N number of work options are there – but our educated guys have a MINDSET for doing particular work at a handsome salary. They are not flexible when they go to the JOB MARKET.

In reality, most business houses are facing difficulty in finding EMPLOYABLE staff.

8.  There are TALKS of GDP going down. The fact is before GST, it was easy to have FAKE BILLS and generate turnover and show a profit. With GST it has become difficult. Today I see many guys are behind bars for GST violations. The bill business has come to standstill or gone down much in the last 3 years. Naturally, it will affect the GDP numbers.

What is my conclusion?

With NORMAL minds – there is a fascination towards MASSIAH kind of person. They want somebody to come in their life and do all their work / remove all their problems and make them happy. Let me give you good news – NO MESSIAH will ever come. You will have to work towards your goals and dreams. The day you make yourself responsible for your growth in the true sense – you will transcendent MODI or NO MODI syndrome.  That day all the pains will look like a pleasure to you. You will really be happy within.

How to apply this for market success?

The market is the smartest phenomenon you can ever imagine. It is fast in finding out the ROOKIE investor and who is a SMART one. My focus has always been in educating my readers and clients with the right kind of inputs – so that they themselves can take the right decision. They don’t have to depend on some FUND MANAGER for their return or some co-operative banks to give them 1% higher on FD.

If you love independence in word and kind – then first step in FINANCIAL independence. If you like our approach and responsibility for personal growth, you can join us.

Have a FANTASTIC FRIDAY.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh