Importers of 'Bad News'!

Importers of 'Bad News'!

In this difficult time of market turmoil, if you are an investor with a decent exposure in the stock markets, I suggest you stay away from the business channels, whichever one be it. It is the time for 'Say No to watching Business News Channel' similar to the 'Say No to Drugs’ campaign; for both of them are intended to inoculate the individual from peer pressure and social influences . Yes, it would be a blessing in disguise, if you realize how much of damage these channels and the rants from their so called financial experts can cause.

For the Indian Markets, where I think, anyone having a good skill at the dart boards can anoint himself to be an analyst or where investing in stocks is very much equated to a stroll down the strip in Vegas, no wonder there is so much of bad vibes circulated – thanks to our business channels – thereby contributing so much to the deluge over the past few weeks.

It has reached the stage of a mass hysteria to lead the poor investing public of this nation into almost a bottom-less pit. For the past month or so, it has been raining bad news after another in every form of media and they have successfully spread the fear psychosis among the masses.

Call it the curse of knowledge, to pick up a Behavioral Finance terminology; more than the liquidity crunch or the over-leveraged financial institutions, it is also the information overload that has played a significant role in the market collapse over the past few weeks. If you happen to frequent Market Watch, they pick up the largest of the fonts on their home page to convey the bad news- so large that it can wreck havoc on any decision you might make that day.

These market commentators appear to have forgotten the thin line between being a news anchor and thereby facilitating the flow of news, to becoming an analyst themselves, thereby making over-arching claims that could cause irreprehensible damage. Irrespective of all the disclaimers and disclosures these channels publish, there could be a potential cartel using these prime-time media to their advantage.

While it is beyond doubt that we are going through a difficult time, it is the way in which we have bought into other people's bad news is causing us more damage. We have become the biggest importer of Americanism, which is seen failing even in their own land, right from their missiles to colas to garbage and now - their bad news!

I doubt if it is a question of liquidity crunch anymore and the markets seem to either ignore whatever actions the RBI can deliver or whatever words of comfort the finance minister can offer; the blood bath readily bursts open any band-aid provided in the form of government intervention.

How would you explain the drubbing of some of the blue chip stocks over the past few years? Agreed the beleaguered FIIs are pulling back every buck they can garner from any part of the globe and agreed we are living in a crazily flat world, where, if the greenback sneezes, the world catches pneumonia! But, in these tough times across the globe where the R-word or the D-word are talked about every day with almost a negative connotation, in every developed country, when did the markets start neglecting a 7.5% growth rate and you call that a slow-down? Less than 5% of Indians have direct exposure in our stock market, which many people still perceive it to betting on horse racing and land their hard-earned money in FDs in public sector banks.

It can only be prudent for the investing public to listen to the words of the PM and show some patience, than to get submerged in the illusion of knowledge put to display in the business channels, by the self-acclaimed experts. It is not Armageddon yet and most of us have better things to do in life. Tough times are the best teachers and we will survive this as we did with any other crisis.

For the moment, just Say NO to the business media!

Jet, Set, Down!

Jet, Set Down!

Last week saw a classic drama of unnerving proportions, which could eclipse any Broadway show, with actors from the corporate, political and social setup playing their role to perfection. Though the end appeared to be a toast, the show did showcase the ability of a wild concoction of a politics and corporate arrogance which influenced the shameful reality of an irrational exuberance, which is buried under rugs of economic growth.

Look at the players, a group of bright tunic clad younger generation of our country, a business-man who till recently has been proclaimed as the czar of one of the growing airlines industry, a politician who is more and more becoming a self-proclaimed alcapon of Mumbai, a shrewd minister who cannot but sit on the sidelines given the electoral implications of this show-piece, a labor minister who by all means is as clueless as a common man in a remote village in this country. All these showmen provided a royal feast to the craving media who, are all set to spice up the any episode in prime-time television boxes.

It all started with a bunch of airline employees given pink slips by their employer and they started making a big hue and cry. Some of the smart ones decided to take their case up with a local political party and what a perfect photo op for its leader, standing beside a bunch of bright lads and lasses. Public and disruptive politics playing in tango is a deadly combination for this country, if at all it is concerned about its economic growth. If Singur was a shame, then what is becoming more common in Mumbai with the goonly behavior of this party is adding insult to that. What empowers them to wield law onto their own hands?

While being on the receiving side for a pink slip is always painful, yet, the whole episode some harsh realities for the young that is being enticed into a fairy-tale ride on the shining India. It is rather unfortunate that there is no safety-net for the working class, be it in the organized or un-organized sectors, in the form of any social security. While the Left considers it politically fashionable to rant against any of the capitalistic moves of the government, it is a shame that they have not spent any hours to bring about any reforms in the social security sector during their association with the ruling UPA for the past four years. Taking up the personal fight on the nuclear issue with the PM was much more enticing than fixing the maladies of the labor laws.

The icing in the cake was the hurried-up news conference by Mr. Goyal himself, who in all likelihood beat the politicians in putting up a dramatic show. Where in the world would a corporate executive be unaware of its managements' decisions? He thereby, set a very bad precedence in corporate governance and social responsibility and thereby causing an irreprehensible damage to the airline's image. Wonder the confidence level of the employees within Jet.

In the end, it was a strong dose of reality check for all of us to decide which path we are heading into – capitalistic or socialistic – or a middle ground. It is high time, the corporate, politico and the working class decide on that or be prepared for a rude jolt like these.