Wednesday, December 23, 2009

Financial power would translate into Super power

The Country which flourishes in the Trade and Commerce would automatically turn into a financial power and then into a Military Power and then into Super power.
Since, the beginning of the 15th Century, the British started trading with all parts of the World and slowly started conquering the world and soon became the super power of the world. Their financial power turned into Military power.
After the Independence of USA from British, they started growing as a business power and by the start of 20th Century they become the center of world trade. The free society and vibrant democratic system of the USA attracted the Investors, Professionals and Business-mans all over the world, to live and do business. Their rule of the law atmosphere has made USA a conducive place for Investing.
Soon USA grew as a financial power and then it slowly grew as a Military power and by another fifty years it is the only super power in the World.
Any country which is growing financially would one day become a financial power and then into a Military power and then as Super Power. In the present days, China followed by India has started growing as Financial powers. G-8 Grouping lost its significance and G-20 grouping has become the new power bloc of the world which includes China and India.
If the financial growth is sustained in China and India in years to come, then surely these two countries are likely to be the Super Powers after USA.

No Super power is going to rule the world forever

We all know the might of British Empire in the 17th,18th, 19th , and 20th Century. There was a saying ‘ The sun never sets in British Empire’ which means almost all the parts of the world were ruled by the British. Such was the mighty of British Empire. They brought most of the world under their rule spanning from America to Asia to Africa. They were the dominant powers in the world affairs at that time.
But they were outclassed by USA and USSR after the world wars. USA and USSR became the superpowers of the World. World politics revolved around them. But after the disintegration of USSR in the 1990s, USA remained the sole super power of the world.
Before the 15 Century, the world was under the control of Muslim rulers. The Arabian and Persian Muslim rulers conquered most part of the world except Americas since it is too far away from their countries and also sea expedition is not possible for far off continent. Sulaimansait even expanded his kingdom to Spain in Europe. Muslim rulers conquered most of the Asia except the Mongolia. They conquered African continent. That is why most of the North Africa was Muslim populated Countries. But their might and importance vanished since the emergence of British Empire.
Before 10th Century, the world is dominated by the rulers from the Indian subcontinent and Mongolians. Chenqish Khan one of the Mongols ruler had made a expedition to conquer the world. But their Importance and power vanished by the arrival of Muslims rulers from Arabia.
No power center will rule the world forever. The super power status of USA would be challenged one day by some other country. But the rotation will  continue forever.

Long Term Investments versus Short Term Investments

There would be always a debate going on whether long term investments are best or short term investments are best. There will always a fifty percent people vote for long term investments and a equal percent of people would opt for short term investments.
Long term investments are investments held by a person for more than one year. Any thing less than that would be considered as short term. Long term investments can be held from one year to a decades. Short term investments can be held from one day to one year.
Even a single day would be enough for the you to get a return from it. Whether it is long term or short term, the utmost important factor is timing the market and picking the right security. Without this no investment would give you a good return.
I prefer long term investment over short term investment just because, even if you have missed the right time but you have chosen the right security, then still you are likely to end up in good investment.
In short term investments, you have to time the market properly. Otherwise, instead of profits, you may end up in loss. The risk is more in short term investments. The short term investments would not give you a second chance. But long term investments do.
Whether is long term or short term, time the market for profitable investments.
Happy investing.

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.