Major Trend of 2021 which can make you lose or gain in tons

 

15^th December 2020

Major Trend of 2021 which can make you lose or gain in tons

Dear Fellow Travelers,

Namaste! We are in the last 15 days of the year 2020. I am sure 2020 will be remembered for a lifetime by our generations. As a practice, we are looking for the major trend for the next year. We keep this in mind while planning our investments. If you like our idea, you can also keep this in mind.

Inflation rate: - CPI in January was 7.4% and it has come down to 5.7% or 6%.  Looking at the situations in the economy our government will keep on pumping cash. This is adding to the fiscal deficit. I see this trend will continue in the coming year also.

Easiest way to reduce the fiscal deficit is to reduce the interest rates government is likely to pay. So, as the borrowing goes up, interest cost does not move up at the same speed.

So, they have reduced the interest rates like anything. At the beginning of the year, it was around 7% and now it is at 5% for Bank FDs. They have reduced the loan rates also. You get a housing loan of around 7% with some conditions.

Legalized Scam against Poor or Middle Class: -

People read various stories of the scams and watch the web series after they take place. When the scam happens in front of their eyes, they are not ready to think.

There is a scam going on so that rich becomes richer and the poor become poorer. How?

Rich will take loans at lower rates and invest in their business or in the share market. They have the skill sets and a battalion of experts at their disposal. They will take tons of money on loan, invest, and make real good money. What’s more, if they fail in their business – they can go to NCLT and settle their loans for 10-20% of the loan and interest amount put together.

If a normal person who has taken a simple housing loan – he will have to sell his house, in case he failed to repay the loans.  

What has happened in 2020?

Ambani sold his company stakes sitting in Antilia. He moved up from 10^th to 4^th place in the world’s richest list. Normal people in Mumbai are still not able to travel as TRAINS are not running yet. It means Normal people’s savings got wiped out or they might have taken loans to support them. As per one Gujrati Newspaper, 46% of the people have taken loans from their relatives or friends to support their daily expenses in lockdown.

So, rich became super-rich and the middle class became poor.

What will happen in 2021?

In the name of the revival of the economy – more and more cash will be given to the poor and rich. The middle class will not get anything. Their FD interest income will go down or would have gone down already, if they have renewed their FD post in July 2020.

In 2021 – I see inflation moving up further. It means, their expenses will increase at a faster rate and income will go down. With this – they will have to live in their capital or would have to take the support of their relatives.

Moreover, COVID is still there to affect the business and job for normal people. It means those who are working will also have a tough time.

What is a way out?

I am not against rich or in support of the poor. Just sharing the scenario. My blogs are written to educate small investors and help them learn the fine art of investments.

Whether you like or not, whether you willingly learn or not, investment is the only way to grow or survive in the coming time.

I don’t want to wish you a Prosperous New Year for the sake of wishing you all. I am showing you a way to make it prosperous for you. Make your choice.

Have a great time.

Follow me on Twitter @hiteshmparikh / WhatsApp – +91-9869425399.

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh