Sensex and Nifty with Dow have been showing weakness. Already market has been slashed by about 10% from its recent peak. Is it time to worry?
War has always been a very very lucrative business since time immemorial. It provides opportunity to fish in muddy water. It helps people in power to divert commoners' attention from the murky politics. This, in turn, gives them time to incite nationalism and send the young to death. Shady deals in politics happens across the globe. That's why there is so much competition to go to the top in politics. War game provides the politicians to enrich themselves by the way of weapon-buying and the associated kickbacks.Remember the figure, worldwide, is in trillions. Without putting up hard core business or spending laborious time in profession, politicians make billions of dollars. Their heirs can spend life for seven generations to come. That's why war is so necessary.
Coming to economy. Disruptions happen while war happens. Supply chain is damaged. This leads to panic and inflation. This leads to increase in the price of Gold in short term. Real estate tanks even lower. Stocks become jittery. It's time to fish in muddy water for the Hedge fund managers and make shady deals with the cheap companys' promoters. Money is made in trillions while commoners, again, lose.
It's always the ordinary investors who lose and clevers make money. Question is, when in a wartime situation can this happen? It happens only when trade sanctions are placed among the countries as a retaliatory measure. Can US, Russia EU afford trade sanctions at this moment? I doubt. Because inflation at US ids all time high at 7%. It'll shoot through the roof if sanctions are put in place. Hence, to my mind, it's going to be temporary phase to make money.
[By profession this author is a 38 years' experienced private tutor. Visit www.dbhattacharjee.com to know more.
