Close your eyes and invest

There are times when you want to invest but looking at all the factors around you, you are put off. This is one such time. Equity is down 10% year to date but up by close to 3% from pre budget lows, with the Sensex at current levels of 18000 up from levels of 17500 seen in February 2011. There is negative news all around and it is logical to be bearish on the market. However, sometimes the market wants to look beyond current negatives and focus on positives and as it continues to do so, markets will surprise on the upside. If this is one such time, then it is better to close your eyes and invest and wait for the market to take its course.

The market can look beyond the current negatives. The Japan nuclear threat, while not gone yet, is slowly losing its intensity. Once the threat dissipates, Japan will start focusing on replacing the lost power capacity and that could provide opportunities in plenty to suppliers of power equipment. Japan also has to rebuild its infrastructure, the cost of which is estimated at USD 235 billion. While one worries about where the money will come from given Japan