Ask a 20-year-old who is old and she is likely to say anybody over 40. At 30 you are likely to shift that to maybe 50. At 40, 60 is old. Our perception of who is old keeps moving as we age. Not long ago, an 82-year-old very seriously spoke to me about “that young man of 50”. But it is true that the answer to “who is old” has changed from what it was a hundred years ago. That’s because, the “who is old” question needs to be seen in the context of life expectancy, or the age at which an average person dies. World Bank data puts this number at 52.5 for the world in 1960 and at 71.8 in 2015. The generation that will live to be a 100 may have possibly already been born.
The answer of “who is old” matters in ways that have nothing to do with vanity. It matters to each of us and it matters to a world that is living longer and longer.
If in the 1950s somebody wrote a future finance story about India, they may not have predicted the market that faces a retail consumer today. Till the 1990s, your savings and investing decisions were dependent on the government. No wonder Indian households chose gold and real estate as saving sumps. The financial sector was a reflection of the overall direction of the economy. Costs were high, service poor in state-owned and run finance. But post 1991, change came suddenly to finance and this column maps some of those changes as India celebrates 70 years of political and 26 years of economic freedom.
Markets are too high, I will wait for them to cool down before I invest. Nifty broke 10,000 and Sensex is at 32,000, is it too high? We’re in bubble territory for sure. Markets are in an overdrive—this ends badly. Markets are looking ahead and pricing in the structural reform the government is doing. Goods and services tax (GST) will cause markets to drop in the next 2 months—we’re just a few days away from a crash. Market is pricing in the long-term benefits of more taxpayers, less black money and better compliance due to GST.
Listen to the voices about the market and you’d imagine people are talking about two very different things. There are two voices that we hear today—one believes that we are already in a stock market bubble. The other believes that small corrections will happen, but we are in a long-term bull run.