Savings is not for TODAY,it is for TOMORROW!!!!!!!!!

Money flows through every ones hand but very few only holds the money firmly. Without some basic attitude, you cannot save money in this fast moving modern world. In economics these basic things are called as "Factors of Production". For every economic activity  the land manpower and money are the basic needs and they are the factors of production.


You may think loans can be availed easily but in reality  the lenders are verifying your repaying capacity and your bonafied.  Even for a home loan the banks are asking for the margin money from the borrower. In this case your savings only will give you a hand.




Even a skyscraper is built with small small bricks only. If you start to save money right now it will accrued  to a large sum tomorrow.
What ever may be your earnings weather  it is in thousands or in lakhs, your needs also more than that of your earnings,hence whatever be the income you have to save a small portion of your earnings.


In this fast changing world, your savings only will give you a hand in your future needs. hence you start savings from this New year itself.
Once you decided to save money there are various ways to save. You can invest in recurring deposits in banks and if you are a salaried person you may voluntarily invest more money in P.F or you  you may invest in systematic investments plans(SIP).
Last but not the least  Every building is built by small small bricks only.

Trend in real estate in India and China a comparison!

In total Indian GDP growth, the portion of foreign investment in real estate market is only 1.1 percent only. Where as in China it is 3.2 percent the reason behind this much variations are many let us analyze  these in detail.


 In China the total land holdings and its rights are with the Chinese government and hence there is no hurdles for the foreign investors to invest. But in India most of the land holdings and their rights are with the Public. The land owners have the sole desecration in fixing  the land price.  They cannot reduce the land price to the minimum but they can raise the land price according to their wish. weather right or wrong they raises the land value and makes huge profits. The mediators also plays to some extent to get more commissions.


In India next to agriculture.  The real estate is giving more employment opportunity and lot of employment opportunities are available in this field.  Generally if a particular sector is of in boom the other industries related to that sector also will get more benefits  they also will be in growth mode.


Hence it is the right time for  foreign investors to invest in this sectors.  For domestic small and medium investors to invest in real estate and construction related shares. Now most of the mutual funds also investing in this sectors only. India's leading bank SBI invests12.7 percentof its investment in real estates only. So think and act wisely.

A successful Stocks and Commodities Trader

Successful trading comes from experience and experience comes from only after spending money and time in the Markets. A trader is considered only if he trades and makes money in bull or bear markets.

Proper analysis and strict financial discipline are the two important factors that are very crucial for a trader to be successful. Successful Traders have developed a good trading system after prolonged testing of the trading system.

 A trading system may be of any kind but over a period, it should show good results, irrespective of any Market. Until you design a trading system, try experimenting with your system till you are satisfied with the system. This is not going to be a easy process.

Once you have found a successful trading system that works for you, you need to test the system for number of times for Profits and losses before you use it in real time.

A trader you trades the markets without proper trading system is destined to lose. So, designing a trading system is the half way mark for a successful trading. The next part is financial discipline.

Financial discipline is nothing but executing your trades based only on your system with proper entry and exit levels. The loss from any trade should be less and the profit from the trade should be more.

Successful mastering of developing a trading system and following it with discipline would surely make a successful Trader.

Will This Growth Sustain forever?

The new Investors and younger generation of India and China feels that the economic growth of their countries are non stopple and the growth is going to be there for ever. May be this growth continue for another decade, but at one stage, any growth has to see a saturation.

Saturation will be followed by the period of negative growth. The economic cycle will always see a high and a bottom. May be the growth and slow growth time periods may differ, but that will happen.

After the World War, Japan concentrated more on their economic growth. So Japan attracted lot of foreign investments from all over the world and the Japanese invested in all countries. The growth was phenomenol since 1950 to 1990. Their Stock Markets peaked in 1989 when Nikkei was trading around 39000.

Since then, for the past 20 years, Nikkei crossed its all time high of 39000. Now it is trading around 10000. It is one fourth of its all time high of 39000. So, a generation on Investors has never seen the peak in Japan.

The same will happen to India or China in the future. People has to learn lessons from Japan.

Rich becomes richer, Poor becomes poorer

The year 2003 to 2008 saw massive growth in India and China. The GDPs of both these countries are growing more than 8 percent while other European and North American Countries are growing at zero percent rate.

Since 1998, India and China saw the growth of IT industry in their countries but the growth was higher in India than China. BPOs and KPOs business boomed in India since then.

The massive growth of IT, Telecom and BPOs in India has helped many middle class families boys and girls in India, particularly in South India, to earn a good salary which hitherto was not available to them.

These middle class families slowly lifted to the upper middle class family category because of the Income they got from these Industries.

At the same time, Chinese concentrated more on other sectors for their growth as they are good in English. So, the growth is even in China in all sectors and the salaries rose nominally for all class of people. Hence, the growth of the Chinese families were more or less homogenious.

But in India, the growth is concentrated more in select sectors of the Industry. So, the growth of the Indian families is not homogenious. Only a few section of the people, say 10% of the population, has enjoyed the Economic growth.

While India was growing one side, we saw farmes suicide in some parts of the Country because of the crop failures. Price rise of essential commodities has made the life’s of the weaker class very difficult.

So, the recent Economic growth is enjoyed only by few percentage of the population of the India.

I would not say it as a real Economic growth untill all sections of the society enjoys the fruits of growth.