MC Inside Edge: Warp and weft of Nandan Denim, caution is the word for new investors, turning barren land into gold

Right now, everything looks good in the stock market. Yes, there are those intermittent corrections and falls but the long-term prospects look solid on the back of a strong domestic investor base. But a large part of the retail investor base is relatively new and has mostly seen only a strong upswing in markets. Simply put, they have not experienced huge losses and may lack the expertise to handle a downfall. This assumes significance as a large section of experts are advising caution on the possibility of the global “bubble” bursting any time soon. They are comparing it to Japan’s fall – the Nikkei has fallen nearly six percent after touching a record high in March. Experts believe that markets, across the world may be ill-prepared for such an event, especially from the point of view of new investors. While there is a counter theory as well that markets like India and China could actually gain from such a global bubble bursting, they believe that some amount of caution would not really harm anyone.

Betting on barren

Dubai was always a preferred destination for many rich and uber-rich Indians who were looking to invest in real estate. Bollywood celebrities appearing in advertising commercials for Dubai properties is also not a recent trend. But while earlier it was all about buying residential or commercial properties in ultra-premium and marquee projects, the recent past has seen an increased interest from Indian HNIs for buying barren lands in the Middle East. While there may be no development or return visible in the next few years, experts believe that Indians are placing a decade-long bet. The reason - climatic predictions. Experts say these regions will receive more rainfall in the coming years – it is a fact that rainfall has been increasing in Dubai over the past decades -- and hence will turn green and profitable. This, in turn, will push real estate prices higher, they say.