INVESTMENT LOGIC

"INVESTMENT LOGIC", LET THE TITLE NOT SCARE YOU,I CERTAINLY AM NOT GOING TO GIVE A MANAGEMENT LECTURE TODAY.INVESTMENT LOGIC IS MY TERM FOR THE THOUGHT TO BE PUT IN BEHIND INVESTMENT. YOU CERTAINLY MIGHT HAVE USED IT AT LEAST ONCE TILL NOW. SAY FOR EXAMPLE YOU BUY CLOTHES IN AN OFF-SEASON SALE,THAT SAVES YOU MONEY, SO THIS IS PLAIN LOGIC,THE ONLY THING IS THAT HERE YOU ARE SAVING RATHER THAN INVESTING .SO HOW TO APPLY THE SAME LOGIC TOWARDS STOCK MARKET.AS USUAL I HAVE AN EXAMPLE UP MY SLEEVE. LETS SAY THAT IT RAINS HEAVILY THIS YEAR AND IT FLOODS ALL OVER INDIA(I HOPE IT DOESN'T).NOW THIS IS A CALAMITY AND BRINGS ALONG HUGE AMOUNT OF HUMAN AS WELL AS INFRASTRUCTURAL LOSS.THE SHARE MARKET DWINDLES AS A RESULT(SINCE ALL KIND OF TRADE IS AFFECTED).BUT THERE IS ANOTHER SIDE TO THE COIN.THIS MASSIVE DESTRUCTION WILL GENERATE MASSIVE DEVELOPMENT OPPORTUNITY.BETTER INFRASTRUCTURE NEEDS TO BE CREATED TO AVOID THE RECURRENCE.THUS IF NEW ROADS,NEW COLONIES,NEW DAMS,DUCTS AND SEWAGE LINES ARE TO BE CONSTRUCTED THEN THE INFRASTRUCTURAL COMPANIES ARE GOING TO GET WHOLE LOT OF WORK,WHICH IMPLIES PROGRESS OR GROWTH FOR THESE COMPANIES.SO IF YOU INVEST IN INFRASTRUCTURE COMPANY DURING THE FLOODS AND IF IT GETS A HUGE DEVELOPMENT CONTRACT THEN YOU CERTAINLY ARE GOING TO PROFIT THE MOST.THE SAME CAN BE TRUE FOR CEMENT AND STEEL MANUFACTURERS AS WELL. I CAN GIVE YOU A LOT PLEASING EXAMPLE RATHER THAN THE FLOOD ONE. INDIA IS ORGANIZING THE 2010 COMMON WEALTH GAMES.THIS EVENT HAS GIVEN RISE TO VARIOUS NEEDS LIKE HUGE STADIUMS,ATHLETE'S VILLAGE,GOOD ROAD CONNECTIVITY,A GOOD TRANSPORT SYSTEM, URBAN DEVELOPMENT WORKS ,etc. NOW WHO ARE GOING TO BENEFIT FROM IT? OBVIOUSLY INFRASTRUCTURAL COMPANIES,STEEL MANUFACTURERS,CEMENT MANUFACTURERS ARE GOING TO BE THE PRIME BENEFICIARIES SO ISN'T IT WISE TO INVEST IN THEM DURING THAT PERIOD? SO EVEN THOUGH I CALL IT INVESTMENT LOGIC ITS PURE COMMON SENSE,YOU JUST NEED TO KEEP YOU EYES WIDE OPEN TO GRAB THE OPPORTUNITY .