In the past two months, I have received numerous communications criticizing me for being overly cautious on markets and questioning the premium Indian equities have historically enjoyed. The primary and common theme in all such communications is that the incumbent government has taken many innovative, unprecedented and revolutionary steps for the upliftment of the poor, farmers, women and youth; supported the small and medium businesses and promoted manufacturing and innovation.
I would like to close the discussion on this topic with the following reproduction of a conversation from the popular 1998 Hollywood movie “There Is Something About Mary”:
“Hitchhiker: You heard of this thing, the 8-Minute Abs?
Ted: Yeah, sure, 8-Minute Abs. Yeah, the exercise video.
Hitchhiker: Yeah, this is going to blow that right out of the water. Listen to this: 7... Minute... Abs!!!
Ted: Right. Yes. OK, all right. I see where you're going.
Hitchhiker: Think about it. You walk into a video store, you see 8-Minute Abs sittin' there, there's 7-Minute Abs right beside it. Which one are you gonna pick, man?
Ted: I would go for the 7.
Hitchhiker: Bingo, man, bingo. 7-Minute Abs. And we guarantee just as good a workout as the 8-minute folk.
Ted: You guarantee it? That's - how do you do that?
Hitchhiker: If you're not happy with the first 7 minutes, we're gonna send you the extra minute free. You see? That's it. That's our motto. That's where we're comin' from. That's from “A” to “B”.
Ted: That's right. That's - that's good. That's good. Unless, of course, somebody comes up with 6-Minute Abs. Then you're in trouble, huh?
Hitchhiker: No! No, no, not 6! I said 7. Nobody's comin' up with 6. Who works out in 6 minutes? You won't even get your heart goin, not even a mouse on a wheel.
Ted: That - good point.
Hitchhiker: 7's the key number here. Think about it. 7-Elevens. 7 dwarves. 7, man, that's the number. 7 chipmunks twirlin' on a branch, eatin' lots of sunflowers on my uncle's ranch. You know that old children's tale from the sea. It's like you're dreamin' about Gorgonzola cheese when it's clearly Brie time, baby. Step into my office.
Ted: Why?
Hitchhiker: 'Cause you're fuckin' fired!”
The point being, you may find a small improvement in the status quo, a transformative development, but I disagree. I want much more evidence of the growth and development than mere headline statistics.