"An intellectual hatred
is the worst."
— W. B. Yeats (Irish,
1865-1939)
Word for the day
Supercilious (adj)
Haughtily disdainful or
contemptuous, as a person or a facial expression.
Malice towards none
The evidence emerging from
Haryana strongly suggests a total
breakdown of constitutional machinery during recent RIOTS in the State.
If this is not a fit case
under Article 356 for imposition of president rule, then there could never be
any case for its use.
First random thought this morning
In past few years, an overwhelming large number of Indian
politicians have demonstrated their disregard for the democratic institutions,
most notably, the Parliament & various State Assemblies, the Judiciary, the
CAG, and office of State Governors.
It is critical to stop here and examine whether only a certain
class of elected representatives have lost faith in the working of democracy in
India, or it is reflection of a perception prevailing in a broader section of
the Society. For without solving this conundrum, we might not be able to move
forward.
Care 'bout elephant sitting right next to you!
In past couple of days many of my regular readers have criticized
me, rather uncharitably, for two things - (a) unduly appreciating the Union
Budget for FY17 and (b) digressing from the market to muddy field of politics.
The common points of criticism are - "why should an investor
take a hard stand on any politician?"; and "how do I care so much
about decades, when all that matters is what the market will do between 9:15AM
to 3:30PM today?".
My critics are not wrong. But neither am I. It's only matter of
different approaches to achieve the same goal.
I have stated it twice before. I am reiterating it. There are
people who live life as a series of discrete days. It's not me. I see life as a
continuous time series. I do not assign much importance to the discrete days,
like last or first days of months, quarters, and years, in the infinitum of
time. The random data points published on these days also do not bother me
much. These data points, including daily stock prices, monthly sales and
production numbers, quarterly profits, are relevant to me only if they form a
easily discernible pattern in a secular trend.
I bother more about the secular trends and not random digressions.
And I have no hesitation in saying that the secular trend in Indian equities is
definitely UP. Rest all is merely matters of discussion.
Now coming to the specific points of criticism.
I am not unduly appreciating the budget presented by Mr. Jaitely
last Monday. I am truly happy. I have been frequently saying that the Indian
economy and hence the corporate India can grow to their potential only if the
growth becomes more inclusive. With 5% people earning, saving, investing ,
consuming and 95% just surviving, the economy can grow only at the conventional
Hindu Rate of growth. We need at least 75% people participating in the growth
process, to grow at the desired double digit pace.
To achieve this, the government need to become an enabler and not
just continue to remain a provider. The finance minister, through his latest
budget presentation, has made a statement of intent to this effect. The
corporates, and the middle classes which will produce the largest number of
entrepreneurs through such enablement, will benefit the most from this change.
All the investors in Indian market should be rejoicing this, like me. Bothering
about a few pennies in extra taxes would be like missing the big elephant
sitting right next to you.
I care least for the dividend tax, knowing fully that only 10-15k
people in a country of 1.30bn would be marginally impacted by this provision.
Insofar as coming down hard on politicians is concerned - I may
clarify that I did not make any political point yesterday.
I see a huge transformative global economic trend in that. This shall have
serious investment implications, in my view. I had written about that couple of
years back also. I will explain again, in some detail, next week.
My greetings to all the readers on the pious occasion of Maha
Shivratri,
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