A depression is coming. Governments will pump currency to counter it. So we will end up with Stagflation i.e. low growth and high inflation.
In the next few months, expect
- Gold and Silver have increased by more than 30% from 1-Jan-2019 to date (29-Aug-2019). Expect them go much higher in coming months.
- Stock market have been weak in 2019. Expect them to remain weak.
- Rupee has been falling in 2019. Expect its fall to continue.
- Petrol/Diesel prices will rise in coming months because Rupee will fall in value.
- India will increase tensions with Pakistan. Politicians will blame the economic problmes on war tensions.
- Indian government will impose tax on cash withdrawals to control inflation. It may even ban the 2000 rupee note.
To protect themselves, Indians should
- Exit stock market and mutual funds.
- Buy Gold/Silver.
- Withdraw cash from bank accounts. Keep most cash in 500 or 100 rupee notes.
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