POST BREXIT RALLY OR ETERNAL SUNSHINE OF SPOTLESS MIND

Nothing to do with fundamentals, this is what the analysts are saying these days, after markets have rallied spectacularly after Brexit. Even currency markets have stabilized now. Have the markets become immune after years of stimulus packages, interest rates close to zero or even negative and low confidence in central governments. Or has it got to do something with Eternal Sunshine of a Spotless Mind. Yeah may be global investors have erased Brexit memories…. Just joking….. 

Bank of England has signaled monetary loosening and the FED, BOJ and ECB have nodded in unison bringing about this global rally fuelled by liquidity which may lead to overheating or overvaluation of Emerging Markets at least in the medium term. So the party goes on till some Act of God like Brexit, completely misread and miscalculated by the markets hits them again. After Brexit, no trigger factor in sight and central banks becoming more and more predictable, stock markets have become barometers of liquidity than economic fundamentals. Even in the current tumultuous times, we need not worry as the ongoing reform process has made it impossible for any class of investors to obliterate Indian economy from their investment portfolio. Reforms in aviation sector, harmonizing telecom spectrum, Rs. 6000 crore package for textile sector and the new National Mineral Exploration Policy in less than fortnight has shown commitment of Indian government to fight global uncertainty on the front foot.  Thus Indian investors are in a sweet spot and to make the most of it follow they just need to the fundamentals as Fundamentals Create Wealth.