This blog is addressed to all those who receive WhatsApp messages and SMS on options trading which gives false promises of making 1% returns weekly, multiplying Rs10,000 ten times or a variant of these.

This century had one decade of good earnings followed by one lost decade. The odds are high that normalcy will come back in FY22 and EPS growth can go back to 10% range. If God is kind, we can grow even faster this decade; a possibility most people have written off for now.

If you go back to history whether the Spanish flu, the Great Depression, the World Wars, 9/11, etc., all had one thing in common. Humans are emotional and we lose hope due to external stimuli extrapolating our current state to future.

We expect the corporate earnings to decline in FY21, given our expectation of contraction in GDP. We remain overweight on Pharma, Telecom, Insurance and maintain underweight on cyclical sectors like Industrials, Metals & Mining, etc.

A spending plan of three to five percent of GDP directed at small businesses, low- income households and financial sector along with long-pending reforms can drive a rapid recovery.

The lockdown has shut down non-essential businesses for weeks and most likely result in GDP contraction in 1QFY21.

What we have is the biggest ever lockdown in the history of mankind! There is an opportunity to do things we could not do before.

Understanding this predicament of many an IFAs spread across the length and breadth of the country, IIFL Securities has developed a solution.

We are passing through the last phase of pain that began with demon, followed by GST implementation and then IL&FS defaults. We believe that economic indicators will start looking up over the next two quarters.

The government has demonstrated flexibility and humility to change its own decisions quickly and prevent damage. The corporate tax increase done in the Budget, has been more than reversed in less than three months.