Clarification on my list of forever stocks that I shared few days back along with the reasons for selecting those stocks as well as criteria for selecting your forever stocks.

Whenever inflation is mentioned, the markets promptly obey the law of gravity and fall. There is no doubt that inflation is an investors worst enemy. Equity investors lose as companies borrowing costs rise, credit becomes tight, and margins are squeezed.

A short term investors should invest in debt products as they give assured returns. On the other hand, if investors are prepared to wait for least three years, they can look at equity. But they need to invest in a staggered manner. For instance, look at daily and weekly STP’S (Systematic Transfer Plans).

Most of the finance and entertainment industries are based in Mumbai which attracts the big spenders, through the city’s inhabitants who are not habitual high spenders. Also, Delhi has more of “Me” culture and Mumbai has more of a “We” culture. It is more common to find families eating out at restaurants in Mumbai than in Delhi.

The government should also ban needless use of cars in a planned manner. Buses, trucks, housing and railways should be subsidized, with massive cuts on service taxes and direct subsidies for carrying passengers and cargo at cheaper rates.

It is important to understand the fact that when the inflation rate goes down, it does not mean that prices are actually declining. It only indicates that the rate at which prices are going up has slowed down to a certain extent.

Now its not all glowing picture for India because if you are growing at such a high pace then the demand for oil is extremely strong and that could led to a more slowdown story then we can think off.

Inflation ended on May 3 is at 7.83% versus 7.61%. The Index of food articles is up by 0.5% , power is 0.8% and of manufactured products is up by 0.3%. Experts say that this Inflation can increase up to 8%.They say that this is because of iron and steel as there prices are so [...]