So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

21 Aug 2018

STOCK MARKET--What happens if 80 crore Indians invest in stock markets?

As of now less than 1.8% (2 crore) Indians invest their money in stock market, so I'm assuming you were probably tripping on some high quality dope while posting this question.
If some sort of miracle happens and suddenly 80 crore Indians rushes to invest in stock market then a lot of money will flow in markets which will lead to following trail of events:
·         Market will become highly volatile thanks to outnumbering of investors by speculators
·         Market will reach new heights everyday following which greed factor will kick in forming a huge bubble
·         Investing in market would become a national video game
·         Smart investors knows exactly what is coming and they will quietly book their profits this is where the fear factor starts working.
·         With stocks valued a lot more than their intrinsic value, the bubble is set to burst
·         boom!!
·         Indian market has hit 50 year low and companies have filed for bankruptcy resulting in increase of unemployment.

So who wins?
irrespective of whether the stock market crashes or hit an all time high, brokers are making substantial fortune by fooling speculators.

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