Stock markets are moving due to enough liquidity – Deepak Mohoni.
If the government gives money to the rich, they will invest but if the government provides money to the poor they will spend and eventually will create demand and will generate profits for the rich and boost money circulation in the economy. These views were expressed by Famous Market Analyst Mr Deepak Mohani who also coined the popular term “SENSEX” in a webinar organized by Daly College Business School. According to Mr. Mohoni Budgets 2021 is as per industry expectation and government policies are in the right direction as globally all governments are taking similar steps and pumping liquidity in economy.He further stated that fiscal deficit wont hurt Indian economy as we are in sync with what other governments are doing globally. According to him Interest rates are going to remain subdued and the government will ensure growth and liquidity. According to Mr Mohoni Global economy is still struggling and COVID situations across continents are not good, while India is recovering quite fast which is a very good sign for us.
Answering a question raised by one student he advised that Retail Investors should not look for targets rather should stay invested for long term. Only Equity long term investment can beat inflation but it is always advisable to retail investors that they should venture through instruments like Exchange Traded Funds (ETF) or Mutual Funds. At any given point of time one should always keep at least 25% of liquidity for unforeseen events which normally happens in stock markets and can provide a good opportunity to buy stocks during corrections.
Investment in Stocks are risky and therefore it cannot substitute the regular income and one should not take it as business, rather it should be taken as a serious investment tool which can generate handsome returns over a period of time which builds a corpus for future.
Mr Mohoni emphasized that there is no shortcut and in depth study is required if someone wants to venture in stock markets. He also recommended books to students and retail investors and also stressed that there are many open sources of academicians which are available on youtube amd one should make full use of it. He also asked students to undergo relevant certifications which are available on various platforms.