Ever since the collapse of Lehman Brothers in September, the dominant mood in world markets has been fear: fear that more banks will collapse; fear that the markets have further to fall; fear that the world will sink deeper into gloom. Warren Buffett, the world’s richest man and savviest investor, thinks it is time to abandon fear and start investing in cheap stocks.
To find out the mood in India, R Jagannathan, executive editor, DNA, and Raj Nambisan, business editor, talked to four experts — Ramesh Damani, member, BSE, Manish Chokhani, director of Enam Securities, Ashok Wadhwa, partner and CEO, Ambit Capital, and Ajit Dayal, founder, Quantum Advisors, and discovered that fear still predominates.
That’s why the intrepid are beginning to invest, despite keeping high cash levels. Their advice to policy-makers: this is the time to forget about inflation and push for consumption.
This is the time to avoid caution and go full-tilt for reforms — in foreign investment, public sector disinvestment, whatever. For companies, this is the time to make capital use more efficient. When there was too much of it, many people wasted it
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