India sitting on asset class bubble. Investors be wary!

Food price inflation, recent petrol price hike, lower employment prospects, corruption all around and reserve bank pumping in Rs. 48,000 crores to easy liquidity crisis - http://www.mydigitalfc.com/plan/rbi-infuse-rs-48000-crore-cash-crunch-580

India's economy is on very thin line. Real Estate sector is witnessing new lows as the price of property is not now in reach of poor people and working professionals. Earlier investors used to buy the property and sell on upside but the prices have gone so much out of reach of individuals that there are no buyers and the investors are stuck with the property.

Commodities asset class is also witnessing the same.  Impact of last week petrol price hike is yet to have its impact. Employment prospects are miserable and there are continued lay-offs at middle management levels trying to bring the costs down.  Retail spending is not picking up as expected.

There is now no fundamental reason for any asset class prices to go up and now we are already in a bubble like situation waiting for it to burst.

Indian Rupee has strengthened against dollar and is now at 44 compared to 49 per dollar. It may reach 38 levels and this may severely impact IT companies and export oriented businesses.

Investors are advised to put their money in FD's and Bonds and stay away from putting money in property markets, stocks or commodities.