18 July 2010

What to do when Government cutting subsidies?


What is your first reaction if you were told that prices of petrol, diesel, liquefied petroleum gas, and sugar is going to increase tomorrow?

As usual, many people rushed to nearby petrol stations and grocery store to up their stocks. Meanwhile, business owners is calculating whether they had to increase their prices and in what quantum. Situation which is familiar for you?
  


Instead, as an investor, I’m calculating how much to invest in those counters which I can benefit from these cost-saving measures by government. And, below is the list which in my opinion can help me to counter the painful experience of higher expenses going forward.



Negative:
Toll-operators, food and beverages, consumer sector, auto industry, steel sector

Positive:
IPPs, TNB, and MMC (sugar distributor)

In fact, this is the beginning only and electricity tariff hike is next, and GST will be introduced later in 2012. Let’s get prepare mentally and financially, friend.

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