Year 2020 To Be High On Steroids

Let me start with the good news. Year 2020 is going to be a profitable year for investors. The Sensex may not shoot too high, but the rise will be broad-based thus, bringing a smile on investors already reeling under huge losses.

Why do we say this? We believe that there would be a lot of reforms and sweeteners doled out to induce support to push the economy and markets into a higher orbit. On the US front, we can expect Donald Trump to ensure the economy remains kicking with low unemployment rates and the Trade Deals remain under control to ensure an easy election victory for him. On Indian front, it has become evident that the government is taking on itself to ensure that the two big reforms i.e. demonetisation and GST do not get interpreted as a failure and this will propel them to keep energising the economy with liberal reforms. Hence, be prepared for a lot of goodies coming your way starting from the Budget on January 31, 2020.

However, do also remain cautious on the fact that while the economy and markets are being held high, the improvements on the ground must pace up. I am referring to the increase in private consumption expenditure, investment, government expenditure and net exports (exports minus imports). Corporate India must ensure that all systems are in overdrive mode within this life support induced time frame and are able to pick up the earnings. It is just like a building wherein the building is being externally supported and more floors are being added. The assumption is that during this time, the foundation of the building will also be strengthened to hold the newer, bigger structure. If the foundation is not in place when the external support is removed, then the reversed things are going to come down like a pack of cards. A crash! A remote possibility but as a well-wisher to our readers, it is our duty to keep them abreast of this possibility. Nonetheless, for next 12 months, things are likely to be good. We are continuously tracking this development and will keep you all updated on the situation. Do stay tuned.

Our ‘Where to Invest in 2020’ cover story talks in details on the market outlook and why we believe 2020 will be a year to reckon with for long-term investors. Various aspects including IPO markets, Gold outlook and global markets outlook is shared for your perusal. We hope you use our observations profitably in 2020!

Technical analysis is something that is very useful for understanding trends, both long-term and short-term. In our Special story, we have discussed the basics of technical analysis in detail and shared some useful exit strategies as well. Icing on the cake is the views shared by the best in class chartists globally. We are delighted to bring to you a holistic perspective on technical analysis which we are sure will be more than useful for the traders and investors alike.

Often, we hear experts comment on how it is a good idea to avoid highly leveraged stocks. Excessive leverage is not good for any company. In our second special story, we have focussed our comments on ‘Zero debt Companies’ and have made some objective statements. Scan them (Zero debt stocks) whenever possible. We urge you to go through the special story for some refreshing insights into zero debt stocks.

Enter markets on a positive note and visualise a better 2020 as the dynamics are in favour of equity markets going ahead.

Wishing all our readers a Very Happy and Profitable New Year!

RAJESH V PADODE 
Managing Director & Editor