I am new to stock market and have started investing only recently. I have invested in few individual stocks and some through MFs and SmallCase. As Sensex has hit all time highs there is a feeling that it may correct but as a long term investor I know that I should not try to time the market. However, while I hear good things about what Govt is doing in various sectors, I do come across information which is contrary to this narrative.
One such example is this document sent to me by a friend. Here one Mr.Vivek Kaul goes on to tell that we are staring at 2008 like situation in India for various reasons and we need to be prepared to protect ourselves. His ultimate aim is to get us to buy his new book (and educate ourselves).
His biggest reasons for his current negative outlook is:
Public Sector has Grown in number and size and these are generally loss making. He gives examples of BSNL, MTNL and Air India.
Unemployment is growing every year and this is going to affect a lot of people. It also says how Make In India, Right to Education and other initiatives have failed to get the employment up. How highly educated people are applying for low paying jobs like Poens, Sweeper in large numbers. This will lead to national disaster and while this may not affect a profit making company or its investors directly, it will certainly dent India’s growth story.
How Govt schemes like MNREGA is leading to corruption
How NPAs of big Govt banks could hurt us.
I have attached the document below.
The Vivek Kaul Letter.pdf (1.5 MB)
Now, I want to know if any of you have read the book and have a view which is either supportive or to counter his claims. Even if you have not read, please go through the document and let me know your view on the same.
Appreciate your time and valuable thoughts.