Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

The challenges for a 'lost generation'
Wed, 2 Feb Pre-Open

Egypt's political turmoil. Japan's government debt. Portugal's and Spain's bailout crisis. US'joblessness. China's currency manipulation. India's inflation. There is little chance that a day has passed without you coming across either of these in the past few months. Sporadic reports of higher GDP growth in emerging markets and corporate results may have brought in some temporary cheer. But the near term outlook is far from being rosy in the developed and developing world. Economies and companies are plagued with structural and cyclical risks to their growth and prosperity.

Rising food prices have already wrecked havoc in middle and low income budgets. And crude oil prices at US$ 100 a barrel can only push the developed world's economic recovery further. In addition the likes of China and India may find it increasingly difficult to pay the oil bills. India for instance imports 70% of her crude requirements and is currently sitting on a huge current account deficit.

Problems relating to joblessness may be of immediate concern to the US. But even the fastest growing economies like China and India have to offer gainful employment to millions in the coming decade. Meanwhile rise in per capital income levels needs to keep pace with inflation. Else social and political unrest could add to economic friction.

The IMF has sounded concerns for the generation to come. The world's largest economic think tank believes that 400 m young people would join the global labour force over the next decade. And there is every likelihood that they may not find gainful employment. Structural imbalances in global trade could lead to rising protectionism. With rising economic tensions, the world could see social and political instability within nations. This raises the prospect of a 'lost generation' suffering from worse unemployment and social conditions.

As far as India is concerned, the risks of high unemployment and inflation over the long term are real. The government needs to take measures to arrest these problems at the earliest. Meanwhile companies will also have to factor in the worst case possibilities in their long term plans. Only then will they be able to tide over the challenges that confront their businesses in the coming decade.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "The challenges for a 'lost generation'". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.