On 8th Nov I was returning after visiting Golden Temple in Amritsar. It was late evening & my family was admiring the quality of Shatabdi's interiors n hospitality. To me money equalled comfort at that time
But suddenly there was a wave of some rumour spreaded in whole train like a wildfire, amazingly my whatsapp messages started piling up with the same rumour.
To my surprise what initially sounded like a funny & idiotic rumour turned out to be true as soon as I internet searched the same on late Tuesday. Prime Minister Narendra Modi banned 500 and 1,000 notes effective midnight, sweeping away 86% of total currency in circulation.
Paytm, India's largest digital wallet startup, hailed the move in the morning newspapers as it splashed Modi's photograph in a full-page advertisement.
What's is the impact on businesses ? I must say WIN some LOSE some... right ??
I have contemplated on this Macro economic change long & hard for past week as I too stood in line outside Bank n also saw empty shops in rush hours. It becomes important to address this keeping our vision of 'Fight against Sattebaaji'
Here are my findings.
News are reporting that shopping malls and markets across the country have reported up to 50% fall in their business in the first weekend after the demonetisation of 500 & 1000 note.
Local market places such as Karol Bagh in Delhi and Crawford Market in Mumbai where transactions are mostly in cash were the hardest hit with footfalls in these markets falling by as much as 70%.
I must say Yeh to hona hi tha as most of these shopkeepers think themselves as Outside The System Smart-Asses.
But then it hits me that if train apply breaks then it eventually gives jerk to last bogey too. I am speaking metaphorically here meaning even though our value picks & premium picks are listed businesses with everything as white transactions & money but some of them do deliver product & services to these shopkeepers & malls.
So we are gonna get hit sooner or later, but let's break it down & draw some rationality out of it. After all valuguyz are Intelligent investors
What is a difference between a Sattebaaj & a Valueguyz ?? It is intelligent investing.
"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative." - BENJAMIN GRAHAM
My thorough analysis of this demonetisation situation has 2 outcome. One reduces businesses turnovers but second outcome increases liquidity in system.
But my problem with this Macro-economic situation is that I have no idea what is scale of these outcomes, how much Mr. Market will react or How high it will go.
Not understanding the quantum of this macro-economic development and yet thinking of Selling off or buying more in the existing Value picks or Premium picks is a clear case of Speculation or Sattebaaji.
My strategy for valueguy remains same as discussed in Advance Course
Keep accumulating premium picks, value picks or your researched picks & keep exiting them as taught in the courses & don't worry much. Everything this Government is doing is ultimately going to be advantageous for us.
PLUS : Everything we do here at valuguyz.com is TAX FREE
Self-reliance is 1st human liberty. Trust yourself as a VALUEGUY & wonderful things will start coming to you.
I am passionate about 3 things in my life Financial System, Fitness & Photography
I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike