I’d like to say that my worries about a possible Indian hyper-inflation are becoming right. The Indian inflation has reached new record levels at 11% per annum. That is, if you owned 100 rupees as hard cash in your piggy bank last January, you’d surprised that, that 100 rupees will only get you 90 rupees worth of goodies by the end of this year.
So about 10 rupees of that is burned by inflation.
At this ceremonious occasion, I’d also like remind all investors, to correct every number you see to be adjusted for inflation. Your beloved company may not really have all the profits it claimed to have made. See everything through the lenses of inflation, because now it is starting to affect real people.
Those real estate hikes your seeing? They aren’t real hikes baby! 10% of the sky rocketing growth is inflation. The rest of it is panic and frenzy.
And cut the hype. You, indian online newspapers guys: you don’t have to spin bad economy story to sound like yet another praise of how well the economy is doing… Be responsible guys. People are really losing money.
Encourage young people to invest in value stocks or spend their salaries. And read some Intelligent Investor by Benjamin Graham. Thats the only way to cut down peoples spending. Interest rate hikes arent going to help.