Stock Investing Strategies

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Change in government and stock market indices

Usually the stock market indices will rise when there is a change in the government as stock investors are usually optimistic that the economic conditions will improve. However this so called “honeymoon period” will vary depending on the economic and other policies of the new government as well as macroeconomic factors.

Though the government may be well intentioned, in a country like india taking action against corrupt officials will be extremely difficult. Data indicates that most of the positions of power in the government in a country like india where casteism is prevalent are held by brahmin officials. The main agenda of these officials is to ensure that they retain a monopoly offer the lucrative jobs of great power. Allegedly these officials will almost always support each other, even if the other person is wrong.

The vigilance department will only monitor assets in the form of savings in bank deposits, bonds, gold and real estate, They do not monitor how many relatives and friends of officials are fraudulently appointed to lucrative government jobs with great powers, salary and pension for the rest of their life. This can be far more lucrative than a one time bribe, a lucrative government job is like a recurring monthly bribe. In other cases, the bribe will be in the form of free sex. These officials continue to work for their personal gain.

So unless a person of great determination and power can outwit these powerful corrupt officials, the well entrenched officials in India are unlikely to improve and the economy and stock market indices will continue to slide .

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