500-1000 Notes Gone What Will Happen To Stock Markets Now

In this article read the impact of demonetization of Rs. 500-1000 notes to the Indian Stock Markets. Will it help in the long term or not.

In short: Please Do Not Panic Wait for Some More Days Things Will Get Fine

This is law of nature. Peace before a storm. Same things happen in stock markets after 5-6 months. After volatile days in Jan-Feb, there was total peace. Nifty range was 8500 – 8900. Then suddenly two big news hit us in back-to-back two days.

Donald Trump stunning the world not just USA and winning US Presidential elections where more than 90% per-poll surveys favored Clinton win, but Trump proved every projection pundits wrong, just like stock markets prove every market pundit and directional trader wrong.

Next big news for India was making Rs. 500 and 1000 denomination notes worthless in matter of seconds. This is frankly good news for the long term for India as well as stock markets. Let’s use some common sense how this will benefit India and stock markets in long term.

1. Black money launders will now fear in future at least for next 10 years to keep money in cash in their homes. They will rather start legitimate business and give employment to people. Lots of new jobs will be created and our economy will grow.

2. Some may not be able to start a new business so they will invest extra cash in stock markets to grow their money. Stock markets will see a huge growth and investments. Do not forget investing in companies will let many other new companies come out with IPOs and again new jobs will be created. Indian economy will grow.

3. Government will get money so Government job pay-scales will rise. People in government job will invest some money in stock markets for their future. They still do but the proportion will increase. Do not forget that that their are lakhs of people having Government jobs. Stock markets will give positive returns and will keep its pace of growth because of more money coming in.

4. No new black money business will start as the new comers will fear this business. I think in the long term 90% of black business will die out and their kids will enter with that money in legitimate businesses. Indian economy will grow.

5. As you can see all the above 4 combined, there is a 99% chance that the black money which were in format papers till now lying somewhere in thousands or even of lakhs of lockers in homes or offices, will now start entering the stock markets therefore Indian stock markets will grow at a good rate in the long term.

So please keep the above points in mind and do not panic. This storm as usual will pass away and Nifty will come back to its previous level before US elections and then stabilize. How long? I don’t know but it will surly happen soon.

What happens to people who predict the markets?

Basically predicting markets is nothing but a gamble. If you win you make a lot but if you lose you lose three months of profits plus some more. After a few months they are down by a few lakhs then email me for the course – some even cry. Frankly this is happening since last 2 years since the day I started this course in May 2014.

Anyway what I am trying to say is this just do not panic and please stop predicting the markets, you make money in short term but lose money in the long term. Do not forget you invest in stock markets to secure your future not to destroy your present.

Many Group A companies are at a great support level, you can keep accumulating them. Please do your own research and buy stocks of companies with great Economy MOAT.

What is Economy MOAT: The term economic moat, coined and popularized by Warren Buffett, refers to a business ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. For more refer this article on Economy MOAT.

Sell them when you make 10-15% of profits.

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | Terms and Conditions | Refund Policy | About Me | Conservative Option Course | 200+ Testimonials - What Traders Say About This Course | Contact Me

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!