Difficult time for Bulls on NIFTY and specifically RE stocks

CY11 has all the makings for being a difficult year for Bulls:

1. Writing this blog on 9-Mar-11, Oil is still on boil with Brent around 116 USD/barrel and Libya seems headed for a civil war.

2. The FY12 budget has disguised an under-capitalized liability on subsidies (Oil, Fertilizer). Expect Debt ratios and CAD to be higher than projected

3. Affordability is going low - food prices worldwide still on a boil, at least a 10% food inflation on items I buy in the UK (Aubergines up from 70p to 87p, cucumber up from 70p to 85p, Diary Milk Chocs up from £2 to £3, Bread up from 60p to 72p, £1 pizzas only on bulk buy of 3 pizzas)

Expect affordability to go low, real estate prices to fall preceded by screeching halt to new buys culminating into indebted developers and project execution delays.
Don't trust research reports giving BUY signals, avoid RE like plague

NEUTRAL on Nifty, NEGATIVE on REAL ESTATE Stocks
On Nifty falling closer to 5000-5200 levels, a good opportunity to buy into quality stocks from a long term perspective. Buy on every 5% -10% dip from 5000-5200 levels.


PS: This is not financial advise, I have holdings in Nifty stocks