panch-tattva talk…UPA wins vote

Friends,

UPA has won the confidence vote but only after a drama was shown on the floor of parliament. Three BJP MPs came with currency notes worth one crore saying that this is part of the money commmited to be paid for abstaining from voting. Such happening was anticipated as the business houses have very thick involvement in politics , particularly Ambani brothers. Nehru had feared this very thing that monopolistic size og business houses will be detrimental to Indian political environment. Secondly, when the people in positions commanding right to excercise power like Ministers and Govt employees from top to bottom are getting favours and monies and the parliamentarians have been powerless to check them , why would they not be inclined to barter power of the kind they come to have occasionally for other things including moneis.The democracy here is still delivering as this is big country , the democracy has failed in smaller countries. The small yet democratic nations of Europe are successful due to universal education and no poverty , also they have personal honesty.

The nifty is marching ahead and has nearly reached 4300 level. With crude down to 127 dollars and political uncertainity over , it may do the Indian Rope trick in the opening session of trading today. Now you may have appreciated why I asked to be invested a long time ago inspite of downward signals . After the markets have gone down below reasonable values due to sentimental reasons or due to fear , they rebound with a speed that nobody can board the train without possibility of hurting themselves.Also in frenzied atmosphere you can hardly grab the right scrips at right prices. This way either the whole bull run is missed or you carry a risky basket of shares. The best time to build afresh a good portfolio is when the reasonable levels have breached and the prices are still in downward mode and not when the markets look up after bad fall. Likewise when the optimism is at its highest like in Dec 07 , it is best sell entirely and not deal scrip-wise.

The panch-tattva recommendations are proving to be good guide, you may have noticed it in this month of July when results pour in. I expect you to take this advice before commmiting your large funds in any scrip or set of scrips.

HariOm,
KrsnaKhandelwal