It seems that every investor is looking at himself in isolation. That means he thinks that the
So as things get set for another debate on whether we would test 12,500 or 7800 I am of the firm view that unless another major catastrophe happens which is inconceivable from the investor�s mind as on date we should not break the lows. What if we hit a GDP of 5% for Fy10? Well, in that case aren�t we discounting a downward revision? The foreigners are already talking of 4.4% and what if we get 5.4% or rather what if we get 3.4%. The sensex should fly depending on where we actually land up.
Didn�t Tata Steel rally as the results were 50% below expectations? One would have bet the stock to fall as the results started to flash but it did not, ditto with Ashok Leyland. If stocks cannot fall when companies are declaring results that are 50% below expectations and sales are down 70% y-on-y then it means that we need a bigger mess to screw up the investor!
So before we come out with that fearful sensex prediction of 6000 or whatever always add a line as to which news will take it there to that level. That is because markets are about the odds and we have no hindsight advantage. The only advantage is one of foresight if only we had one!
What I know is that this is a great buying opportunity and the best investments are made in these times only.
There should be no fear for one who is investing for 4-5 plus years.
The more it goes down the more buying opportunity arises.
Posted on:2/17/2009 4:48:53 AMmsjala
Thanks for the article Basant Sir, Perception is delayed reality. On Jan 20'th 2008, India was still a great story. Only after April, noises about All's not well started raising. Your words are very true. More than the heart, having the stomach to digest bad news seems to be important these days.