Stock market corrections are painful and can sap the spirits of all but the most seasoned investors. Unfortunately amateurs – who have never seen a full market cycle and joined the bandwagon to make easy money– far outnumber veterans. Inexperienced investors are all mushy about their losses and may take long to recover their animal spirits.
Echelon’s 2013 Investor’s Guide is focusing extensively on how investors should meet this new reality. We explore the possibility of a resurgence of corporate bond issuing next year, meet the country’s top economic forecaster and ask some of the smartest minds in the stock market to break down the challenge facing individual investors. One of the most controversial new investors in the market Dilith Jayaweera also talks about how mafia accusations don’t bother him and readily discusses some of his trades (read story).
Central Bank governor Ajith Nivard Cabraal, isolated after the bank’s soft peg exchange rate policy had to be abandoned in 2012, explains why this year the bank will focus on growth as a priority (read story). There is all round more optimism about this year than about 2012.
However capital market related infrastructure is embryonic and regulatory risks are growing. In the January issue we try to guide you through these challenges.