"Transitions from Bear Markets to Bull Markets" - HBJ Capital's Research Report Released today!!!

Dear Friends,

We are living in the world of uncertainty where it is becoming very difficult to say which company or which country will go belly up next day. In this difficult time leaders from the world's top 20 economies are gathering in the US capital, Washington DC, in the latest attempt to combat the global financial crisis. G20 summit is launch of a process rather than finding a final solution to deal with the global financial crisis.

Open agenda involves, bring a new monetary system or strengthen IMF. But there is only one way to solve the current structural crisis i.e. to de-value world currencies by bringing news dollar, new euro etc for each one old dollar or euro. De-valuing currency will lead to high inflation & asset prices will rise or mortgage prices will stabilize.

It is true that , “If we can’t print money fast enough to fend off another deflationary Great Depression, then let’s change the value of the money.”

But don’t expect even a new monetary system to put the U.S. or the global economy back on track toward the high rates of real growth that we’ve seen over the last several years. That’s simply not going to happen. But this is at least a right & fundamental approach to solve this problem.

Best investment now would be #1. Gold, #2. Natural Resources related stocks & #3. Robust portfolio with consumption & infrastructure related stocks for long term.

Not to forget that we are primarily a domestic economy focused nation. Our fundamentals are good. Our productivity is improving. Yes, we had a huge stock market fall, but that was because we are all linked in some sense - we have 25% of market capitalization held by foreign institutional investors and when they see uncertainties in their countries they dramatically want to pullout as much as possible from foreign countries. We do think that things will get back to normalcy, get back to buoyancy quicker in India than in most of the countries – that’s what we feel.

Note: Don't miss out the "HBJ Team recommends 6 best stocks for long term wealth creation."

Wish you all the best.
Head, Equity Research & Investment, HBJ Capital, India