You would be forgiven to assume that we are talking about gold. Easily the asset of the past decade and maybe the current as well, gold is indeed on a hot streak right now. But we are not talking about the shiny, yellow metal here. Instead, we are referring to another equally attractive long term asset class - Indian stocks. Yes, that's correct! As per a leading daily, Indian stock markets broke another record yesterday. In fact, it broke a record as long standing as 20 years. By closing in the positive during the quarter, the Indian markets have now gained for six consecutive quarters. This, as per the write up, is its longest run in 20 years.
It all started with the quarter of March 2009. Markets across the world tested their multi year lows as the financial crisis wreaked havoc on business confidence and liquidity. Just then, the governments stepped in and unleashed one of the biggest stimuli ever. Confidence made a swift comeback and the Indian markets have not looked back since.
In fact, they along with their BRIC counterparts have left developed markets in the shade. And the future does not look bad either. There are strong chances that the developed world would suffer what is called as a double dip recession. However, there are no such fears for India.
At best, GDP growth here will slow down a bit but make no mistake, thanks to our demographics and strong fundamentals, we will still remain one of the fastest growing economies in the world.
This would then ensure that Indian stock markets too chug along nicely. We are not willing to hazard a guess whether the streak will extend itself or not. But what we are near certain about is the fact that few years from now, Indian markets should certainly be much higher than present levels.